Tuesday, April 30, 2019


Eradicate Poverty? We Already Know How
   
Want to help the poor? Champion free enterprise. That flouts the conventional wisdom — at least as it’s presented by many politicians and “mainstream” media outlets. They would have us believe that free enterprise (or to use their preferred bogeyman, capitalism) exacerbates poverty. In fact, they think we can’t help the poor without a heavy dose of socialism.

But the facts aren’t on their side. They have the equation exactly backwards. What alleviates poverty isn’t so much government doing something. It’s government getting out of the way.

“Democratic capitalism has done more to pull people out of poverty than any other system in the history of humanity,” best-selling author Arthur Brooks says in a recent video for the Daily Signal.

He recalls the stark pictures found in National Geographic magazine in the early 1970s, illustrating the famine that was killing hundreds of thousands of people in east Africa. Seeing these poor children with distended bellies and flies on their faces was heartbreaking, but the message, Mr. Brooks recalls, was that nothing could be done.

“Even as a little kid, I knew the charity wasn’t going to get it done,” says Mr. Brooks, the president of the American Enterprise Institute. “It was a hopeless feeling.”

So one would hardly expect conditions to have improved for the world’s poor in the decades since then. And yet, unbeknownst to most people, they have.

Some 70 percent of Americans think that hunger has gotten worse since 1970. But it’s not true: 80 percent of starvational poverty has been eradicated in the last 50 years. Poverty still exists, to be sure, but has been substantially reduced since Mr. Brooks saw those searing images in National Geographic.

“Since 1970, the percentage of the world’s population living on the equivalent of less than a dollar a day has fallen by more than 80 percent,” he wrote in a 2012 Washington Post article. “Hundreds of millions of people have been pulled out of grinding deprivation.”

Can we thank U.S. foreign aid, or some well-crafted U.N. development project? Those are the remedies usually touted by pundits and politicians.

Nope. It was free trade.

In China, for example, some 400 million were pulled out of absolute poverty between 1981 and 2001, thanks to free trade and foreign investment. People can rail all they want about globalization, but it’s made a huge difference in the lives of poor people who would otherwise languish and die.

At The Heritage Foundation, we’ve been documenting the effect of free enterprise for years with our Index of Economic Freedom. This annual guide takes a hard look at the economic conditions in every country around the globe, and the evidence is unambiguous: The freer the country, the more prosperous it is.

Per-capita incomes are much higher in nations that are economically freer. Economies rated “free” or “mostly free” in the 2019 Index enjoy incomes more than twice the average levels in all other countries — and more than six times higher than the incomes of people living in economies rated as “repressed,” such as Cuba or Venezuela.

So how do we help the poor today? Not by yielding to the demands from many on the left who insist we need more government. We alleviate poverty by explaining who the real hero is: free enterprise. We highlight its successes and show that poverty persists where it is denied.

“This is not about business,” Mr. Brooks adds. “This is not about ideology. This is about human lives — real people, real faces, real stories. These are the people that we need to fight for today. And we know how to get it done.”

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The left’s projection is on display over the Census citizenship question

By Bill Wilson

Like clockwork, the lunatic left mouthpiece at the Washington Post, Dana Milbank, jumped on the Supreme Court hearing over the upcoming Census like a dog to the Pavlovian bone. The citizenship question has been used in all but three Censuses in modern history. But according to Milbank, the entire intention of the Trump administration’s move to include a question on the Census about citizenship is nothing more than a nefarious stab to “preserve white power.”

Now, I doubt anyone has missed the point that in today’s America anything the radical left does not like is immediately labeled “racist,” or an expression of “white privilege.” It is a tar used to smear anyone not toeing their Maoist line. Their Cultural Revolution aims to destroy history, to alter reality, to remove all opposition and condemn any resistance to their rule. It is the ultimate lie, of course. But in the Through the Looking Glass world the radical Left is constructing, there is no room for dissent, honest or otherwise. Do as you are told or face the wrath of the mob.

The sad truth is there is some racism in this exercise but not what Milbank and his ilk want you to believe. There is overt racism from the Left. They use race like a weapon and have not a care in the world for the damage they do to the very people they purport to support. Let’s take a quick look.

The Department of Housing and Urban Development wants to institute a rule that people in public housing be citizens. Why? Because they project that 40 percent of the public housing units have illegal aliens in them. Meanwhile, we have a homelessness crisis — disproportionately affecting African-Americans — while there is no housing available. Well, if the illegals were kicked out, that would nearly double the number of housing units available for Americans. Now, that Mr. Milbank, is racism. You want to deny poor African-Americans housing so you can give them to illegal aliens.

Want more? Data now reflects the impact of Trump administration policies on illegals. While our border is under attack, the overall presence of illegal aliens is down. And what has that done? Made jobs available to millions of unemployed African-Americans, including teenagers who need that first job. And, with the reduction of the artificial lower end of the labor pool, the price of labor — wages — have been rising. Now, everyone can understand why the Open Borders crowd and their plutocrat fan-club favor flooding the labor market to reduce wages. But why, Mr. Milbank, do you and your leftist friends want fewer jobs for African-Americans and lower wages for the jobs they do get?

One of the oldest tricks in the propaganda book is to accuse your enemy of your own greatest crime. That is what we are seeing from Milbank and the radical left. The most egregious example of this was Hillary Clinton contending that Donald Trump was guilty but could never be indicted. Really? From her? That, from one of the most criminally inclined politicians in American history? No indictment for breaking the law on her keeping classified emails on a private email server, when it was obvious to even her pets at the FBI that she is guilty as sin. No indictment over the land scam called Whitewater. No indictment — no accountability whatsoever — for letting American diplomats get butchered in Libya after people begged her for more security. The list of highly questionable actions where Hillary Clinton was “let off the hook” is too long to list here but check it out. From the Uranium One controversy, to selling seats on trade missions to the outright scam that was the Clinton Foundation, for her to try to say that somehow Donald Trump is privileged and poor Hillary is just an everyday American is ridiculous to the extreme.

In a few weeks we will know if the Supreme Court allows the Trump administration to ask the simple question about citizenship. Hopefully reason will prevail and they will go forward. And should that be the case, get ready for an avalanche of denunciations from the Milbank types. But remember, virtually everything they charge, allege or slur against Trump is actually their own sins. They just hope the people won’t notice.

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Medicare Trustees Report Reality-Checks Bernie Sanders’ Socialist Delusions

Medicare is basically broke already

The report once again demonstrates Medicare’s shaky financial standing, as the retirement of 10,000 Baby Boomers every day continues to tax the program’s limited resources.

Many of the left’s policy proposals come with the same design flaw: While sounding great on paper, they have little chance of working in practice. Monday brought one such type of reality check to Sen. Bernie Sanders (I-VT) and supporters of single-payer health care, in the form of the annual Medicare trustees report.

The report once again demonstrates Medicare’s shaky financial standing, as the retirement of 10,000 Baby Boomers every day continues to tax the program’s limited resources. So why would Sanders and Democrats raid this precariously funded program to finance their government takeover of health care?

Medicare’s Ruinous Finances

Before even dissecting the report itself, one major caveat worth noting: The trustees report assumes that many of the Medicare payment reductions, and tax increases, included in Obamacare can be used “both” to “save Medicare” and fund Obamacare. In practice, however, sheer common sense suggests the impossibility of this scenario—as not even the federal government can spend the same dollars twice.

The last trustees report prior to these Obamacare gimmicks, in 2009, predicted that the Medicare Part A (Hospital Insurance) Trust Fund would become insolvent in 2017—two years ago. To put it another way, under a more accurate accounting mechanism, Medicare has already become functionally insolvent. Obamacare’s accounting gimmicks just allowed politicians (including President Trump) to continue to ignore Medicare’s funding shortfalls, thus making them worse by failing to act.

Even despite the double-counting created by Obamacare, the Part A Trust Fund faces significant obstacles. Monday’s report reveals that the trust fund suffered a $1.6 billion loss in 2018. This loss comes on the heels of a total of $132.2 billion in trust fund deficits from 2008 through 2015, as payroll tax revenues dropped dramatically during the Great Recession.

Worse yet, the trustees report that trust fund deficits will continue forever. Deficits will continue to rise, and by 2026—within the decade—the Trust Fund will become insolvent, and unable to pay all of its bills.

Replacing One Decrepit Program with an Even Worse One
Another little-noticed element of the report also hints at the problems single-payer supporters face. For the third straight year, the trustees issued an “excess general revenue Medicare funding,” further illustrating the program’s questionable finances.

In 2003, House conservatives included this mechanism in the Medicare Modernization Act, which requires the trustees to make an annual assessment of the program’s funding. If general revenues—as opposed to the payroll tax revenues that largely cover the costs of the Part A program—are projected to exceed 45 percent of total program outlays, this provision seeks to prompt a debate about Medicare’s long-term funding.

Compare this provision, which triggers whenever general revenues (i.e., those not specifically dedicated to Medicare) approach half of total program spending, with single payer. As these pages have previously noted, here’s what Section 701(d) both the House and Senate single payer bills would do to Medicare:

(d) TRANSFER OF FUNDS.—Any amounts remaining in the Federal Hospital Insurance Trust Fund under section 1817 of the Social Security Act (42 U.S.C. 1395i) or the Federal Supplementary Medical Insurance Trust Fund under section 1841 of such Act (42 U.S.C. 1395t) after the payment of claims for items and services furnished under title XVIII of such Act have been completed, shall be transferred into the Universal Medicare Trust Fund under this section.

Both bills would liquidate both of the current Medicare trust funds—and abolish the current Medicare program—to pay for the new single-payer plan. But how do Democrats propose to pay for the rest of the estimated $32 trillion cost of their program? Sanders referenced a list of potential tax increases (not drafted as legislative language), but the House sponsors didn’t even bother to go that far.

In sum, single-payer supporters would take a program on shaky financial footing, and replace it with a program that Democrats have little idea how to fund. Apart from the fact that the American people can’t afford this “reform”—how much of that $32 trillion tax increase would you like to pay?—American seniors certainly can’t either.

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Congress must find conservative solution to the entitlement crisis

Since Democrats took control of the House, there has been no shortage of bad legislation that has either been pushed through the lower chamber or advocated by progressives. Democrats were set to consider yet another “caps deal” to bust its own spending maximums set under the Budget Control Act. The Democratic leadership has pulled it from the schedule as progressives and moderates in the party disagree on spending levels. Progressives, of course, want more spending on domestic programs.

These caps only have to do with discretionary spending, excluding most of our federal entitlement programs. Make no mistake though because Democrats want to increase spending on those as well. However, lest the United States face a fiscal collision second to no other in the history of the world, we must instead reform, rather than grow, our federal entitlement programs so that we shrink our biggest federal spending programs.

The left continues to insist, with measures like Medicare for All and the Social Security 2100 Act, that it is a good idea to expand these already near bankrupt programs. Fortunately, conservatives have a plethora of ideas on the table. They would make the step of reforming entitlements, and decreasing mandatory outlays as a result, a reality. From simply decoupling Social Security from Medicare Part A benefits for retirees or implementing a per capita cap on Medicaid spending to a full Swiss style debt break or even a balanced budget amendment to our Constitution, the scope of possible reforms is broad.

All that needs to happen is for our elected officials in Washington to put their selfishly motivated political calculations aside and do what is best and what is required to uphold and defend the Constitution of the United States against all  foreign and domestic enemies. Each member of Congress swore to do this when he or she entered our legislative body, and many have taken this oath to serve our country multiple times.

Notably, Republicans across the country campaign in election after election on fiscal responsibility. Many Republicans in state and local governments act on their promises and contribute to balanced budgets that states and municipalities are bound to follow. However, this is not the case for others. There is nothing fiscally responsible about running away from the problem at hand and, by and large, this is what Republicans, save for a few true budget hawk conservatives, continue to do in Washington.

Sometimes, the Republican leadership and rank and file members will appear interested in the issue of fiscal responsibility while in office, paying lip service to the issue or holding a vote. However, supporting a show vote every once in a blue moon on a weak balanced budget amendment that everybody knows is doomed to fail or making the occasional floor speech about our broken budgeting process is also not enough to tackle this.

Votes such as the one on the balanced budget amendment held by the Republican leadership last April following shortly after members were coerced into passing a massive omnibus spending bill are an affront to Americans who are deceived by what their elected officials choose to send in email updates. These members know that real action is what matters, but they do not want to deal with the hardship that fighting for something they may believe in requires. But no matter what they do, the facts of the case are clear and the situation is only going to get worse.

Our $22 trillion debt is entirely unsustainable. It has more than tripled in the past decade and a half alone with no signs of slowing down. It drags down our economy and dampens the positive effects of tax reform and deregulation. It is the single greatest national security threat our country faces today. Whether the solution is seeking reforms to Social Security, Medicaid, Medicare, ObamaCare, welfare, or any number of other drivers of our debt, inaction is simply not an option. There is no excuse for more inaction by Congress, and especially by Republicans, on reforming entitlements and getting mandatory spending on a sustainable path.

Fiscal responsibility means prioritizing our national finances, paid for by taxpaying citizens, over the selfish motives of public officials. In Congress, this may seem a tall order, but it must be done. Members should look to champions of entitlement reform ideas for guidance to see it through.

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Powey Synagogue Shooter Left Manifesto With Hate Statement About Trump: a “Zionist, Anti-White, Traitorous, C*cksucker”

One women died and several injured  in shooting on Saturday at a San Diego synagogue. Police have one man in custody. The shooting took place exactly six months after the Tree of Life Shooting in Pittsburgh.

One of the victims is the synagogue’s Rabbi, Yisorel Goldstein, who founded the Chabad center in 1986.

Police said the killer left a manifesto. Authorities are also examining his social media accounts.

According to reports the manifesto was posted on Pastebin on Saturday.



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For more blog postings from me, see  TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCHPOLITICAL CORRECTNESS WATCH, AUSTRALIAN POLITICS, and Paralipomena (Occasionally updated),  a Coral reef compendium and an IQ compendium. (Both updated as news items come in).  GUN WATCH is now mainly put together by Dean Weingarten. I also put up occasional updates on my Personal blog and each day I gather together my most substantial current writings on THE PSYCHOLOGIST.

Email me  here (Hotmail address). My Home Pages are here (Academic) or  here (Pictorial) or  here  (Personal)

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