Beyond the Cusp

July 27, 2018

Democrats Offer Rehash of Same Old Song

 

Rereleasing old songs, as if they were new, works well in Hollywood as we always hope the remake of an old favorite movie will offer more pizzazz and though some do, most just let us down and we leave the theater feeling hollow. The music industry does the same thing with old songs, often over and over, and still the original is often the one we prefer best. But at least Hollywood and the music industry choose successful movies and songs to try to modernize, and still they usually fail the test of time. The Democrat Party is trotting out their oldest theme which has worked by lulling the people with stories of getting everything for free and never having to pay. The electorate soon realizes that there is no free lunch and somebody has to pay. The sad reality is that often the people who were promised that everything was to be free are the exact ones who end up paying. But the Democrats believe that they can win the youth over with their message of redistribution of wealth and everything for free with only the wealthy paying. What the Democrats are not telling them is that anybody who has a job is the Democrat definition of wealthy.

 

The War on Poverty has failed which is proven through the Cato Institute study showing that the collection of federal and state welfare benefit packages could deliver over $30,000 to a family without them working or even seeking employment. Perhaps this free stuff is the incentive to remain taking all the free stuff offered rather than working as if done to the full extent, one could keep the family fed for free. Benjamin Franklin offered some brutal and painful truths when he stated, “I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. In my youth I travelled much, and I observed in different countries, that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.” Benjamin Franklin allowed for people who were new in poverty, such as those whose job was abolished by unforeseen calamity such as the workplace closing, to receive temporary benefits, as their newfound poverty was not of their making. But as with many such allowances, it comes with a but, and that but is these are to be temporary and none should be supported by other people’s labors permanently, especially over a prolonged period. Franklin firmly felt that making people uncomfortable with poverty was the best remedy for their situation and not making the life of those in poverty comfortable and wanting for nothing. Perhaps it was this position which had the mint place Ben Franklin on the $100.00 Bill pictured below.

 

Ben Franklin on the $100.00 Bill

Ben Franklin on the $100.00 Bill

 

Numerous studies have shown that those in the United States who are considered to be in poverty have a modern flat screen television, computers, a vehicle which is more often previously owned but some have new cars, a microwave and numerous other items which could be considered to be a luxury. We remember the first time such a study was released, which was before flat screens, so then it was just color televisions and stereo systems, we were left somewhat stunned as we did not own a microwave as they were still too pricey for a retail salesperson’s and a secretary’s salaries. We found that one reason was the poverty-stricken were residing in government assisted housing while we resided in the posh suburbs in a spacious two bedroom apartment. The italicized should be read with great sarcasm as the government assisted housing area was less than a mile away across the city limits inside Philadelphia while we then resided in Ben Salem just off Street Road, yes, that was the name of the road. This is not then a new problem as this refers to a survey performed in the 1970’s when even many Democrats feared that those in poverty had become too comfortable in their poverty.

 

The truth which needs repeating, and should be taught to students in their introductory economics classes and political science classes, but that would be considered detrimental and not aiding in the proper indoctrination of the student to expect and support full Europeanizing of the United States, is that socialism has and will always fail. Another item which bares repeating is that the United States was the nation, and even before nationhood, the region where one ran from Europe and its habits, to start a new world where if one worked hard they would succeed and not have governments dictate where their moneys were to be spent. The American Revolution was over a three percent tax on tea. Let that sink in, a three percent tax on tea. It was the principle that they were being taxed to support somebody else’s spending and that this spending was done without their even being allowed a vote to elect the government taxing them to cover its expenditures. Many people in America today did not vote for those who support these seemingly extravagant welfare related expenditures, especially to allow a family to collect a government provided allotment greater than their salaries after taxation. We can fully understand one taking the government handout and not working if in order to take home an equivalent sum annually would require, if our math is accurate, over $42,500 in salary per year. That requires being employed at over $20.00/hr working a forty-hour week. With such generosity provided by the government, one would be foolish to take employment at minimum wage, even if it was the $15.00/hr that the Democrats are pushing. With welfare and other subsidies offering such free money which exceeds even their dreamed of higher minimum wage, it is no wonder that employers are unable to fill minimum wage entry positions. Oh, and guess who pays for all of this largess? Anyone making over $20.00/hr, that’s who.

 

So, where as those who have learned to live off the system may be receiving a free lunch, those who work and pay for it know that their lunch is far from free. We have heard about the degrading system which makes one wait in lines and the shame in paying for groceries with the government card and all the other horrible requirements made for people to collect these funds. We also know the other side of approaching half one’s paycheck being eaten by taxes, federal, state, county and city. Even FICA now goes directly into the general fund as the lock-box has been eliminated as the politicians found leaving little IOU’s on the “Social Security” lock-box far too tedious when stealing what was supposed to be set aside to pay for Social Security in the future. The politicians act like there still is such a lock-box, and there is, it is just no funds are ever inserted as all funds enter immediately into the main stream of cash flowing through Washington D.C. in order to pay for all the goodies they keep enacting. What the systems for eliminating poverty are now accomplishing is guaranteeing that once one reaches the stage of going onto these programs, they become all but impossible to leave simply because it would require quite a cut back in one’s lifestyle as at an entry wage one would have to take almost a one-third cut in their income.

 

Everyone remembers their first paycheck; they waited eagerly those first few weeks, regularly computing all the money they would get, all but spending it on music or the down payment on a super stereo (we were just beginning high school when we went through this calamity), and then we receive the envelope with the check with all our hard earned money inside. Then we opened the envelope and the sum in the box marked, pay to, and the shock went through our young bodies, the mind raced, we felt a little queasy and just knew something had to be wrong. We asked our go-to experts on all things in the real world, we knew them as Mom and Dad, and usually we asked Dad these questions, and Dad explained taxes and how as we were working part time we would get most of those withholdings back sometime next year. Withholdings, next year, whose idea was this rip-off, we wanted names and addresses so we could go and well, go and do something. Time proceeded along its pace and we stopped planning on spending our money until we actually had the check and even got to the point we could estimate what would be left for us. Then you are placed on the sales floor and are paid by commission against minimum wage, which made figuring out your paycheck became calculus. But that shock of the withholdings is one you never get past and when money gets tight, emergencies or whatever, it happens, that is when you really feel that the system is broken.

 

The reason is simple, by taxing the rich using the income tax you are missing their wealth as the truly rich invest, they do not work for a salary, and the average CEO gets stock bonuses and a car and chauffeur and other perks, not a big salary. They pay little to no income tax as income tax is the way the truly wealthy make sure no regular working stiff ever makes into their ranks protecting their status as those with all the power. They may eventually, if they do not reinvest their funds fast enough, have to pay capital gains taxes but only on the increased value of the stocks, the principle is never touched. Their initial wealth remains untouched and should they decide to buy another mansion, they buy it as an investment such that they get to use it as a deduction against their capital gains taxes. They often have all their expenses taken off their portfolio so as to use them as losses incurred and pay themselves some paltry salary as spending money off a trust fund set up to avoid paying taxes. The only way of touching these wealthy, the truly wealthy, would be a wealth tax, and that will never happen. Just for the record, ever wonder how Congresscritters become so wealthy on what is a mediocre income? The answer is so basic that it will really upset you, Congresscritters and their senior staff are immune from insider trading laws because they have so much insider information that they would not be able to control and invest their wealth if they needed to obey such restrictions. These are the people screaming that Trump is staying at hotels where he owns the property and they make insider deals knowing which company is about to receive billions in tax monies for some government program? Please, give us a break. They are all scoundrels.

 

The whole problem is that the monies one receives in the various welfare systems cannot exceed the take-home pay of a minimum wage earner or there is no incentive to go out and work. But the Democrats have a solution for that. Remember, their solution for high college tuition is for government to pay for college, free college, their solution to high medical bills is for government to pay the medical bills, their solution for the problem of the moment is for government to pay, their solution to all your problems is for government to pay; but the government does not earn any money, they just take it from those who work. We wish to close quoting Margaret Thatcher who once said, “The trouble with Socialism is that eventually you run out of other people’s money.” That is exactly the problem that Venezuela is suffering, Greece is suffering, Italy is suffering and what eventually killed the Soviet Union and cripples Cuba and most of Europe. That is another reason for the United States not to go down the apparently perfect plan of socialism and instead to return to the Constitution and limited government with the powers accumulated in Washington D.C. being redistributed amongst the individual states where the people have greater control.

 

Beyond the Cusp

 

July 18, 2018

Problems the Leftists Refuses to Accept

Filed under: Israel — qwertster @ 1:54 AM
Tags: , , , , , , , , , , , , , ,

 

Leftists have another name which they have finally proclaimed loudly and proudly, socialists. The far left in the Democrat Party have finally flat out stated that they desire to install as much socialist programs as possible once they return to power. Bernie Sanders was just the introduction to socialism with his free medical care, free college, and a guaranteed wage for everybody and raising the minimum wage to fifteen dollars per hour. Had he won the Democrat Party primaries, we very likely would not have President Trump and instead had President Bernie. But why is it that these leftist policies have been such a disaster wherever they have been attempted such as Venezuela has become currently after a decade of socialism. How can governance which guarantees so much to every individual end up with shortages in food, medicine, toilet paper and virtually everything else including jobs?

 

The problem with the views of these leftists is they have a basic misconception about human beings. If you ask the average leftist the simple question, “Do you think people are intrinsically good?” Their answer will be in the affirmative comfortably over the 90% level. In one sample we read about, a mere 4% answered that people were either neutral or not intrinsically good. If you ask a conservative the same question, they have great difficulty answering and will often claim that people are good if they are trusted with responsibility for their actions and have basic guidance, but otherwise; people are basically greedy and will act to get away with that which they are able. This is the basic difference and why conservatives believe that capitalism is a better system. They do not claim that capitalism is perfect, but they claim that as it depends on people’s greed to power their work ethic as being the central reason that it will work better. They point to the fact that if you desire more toys, then you need to get a better job or simply work harder. Advancement is on merit, not simply time put in as in unions, thus people have to perform in order to gain a higher salary and promotions. They point to the central problem for socialism is that you are given what you desire without any linking the goods to your productivity. They postulate that if you will receive raises or bonuses simply by belonging to the right group whether you produce or not, then one will join the union, belong to the prevailing party that grants the goodies or whatever while not bothering to work and produce.

 

The socialists and leftists will often claim that people will be assigned jobs because if you are being paid the guaranteed wage, then the government has to guarantee that you have a job to justify that wage. But such a job would more than likely be busy work and not anything which would add to the productivity of the society. China under Mao Zedong had a guaranteed wage and guaranteed job. One of these busy work jobs had some hundreds of people given small scissors and a ruler and had to measure each blade of grass and cut them at exactly five millimeters in height. These teams would be given a stretch of grass that they were responsible to perform this job and once they reached the far end of their assigned field, it was time to start again at the other end because it took almost half a month to cut all the blades starting at one end and working to the other end. The problem they soon found was after these teams had cut their length of field four or five times, they were slowing down and now taking three weeks and after a year, they were taking over a month to finish the field. The workers did not care because they were to receive the same pay no matter how slowly they worked. The way that this lowering of the worker efficiency was addressed was frightening. Mid-ranking Party officials were assigned to oversee the workers with instructions to simply shoot those who appeared not to be working fast enough. The result to this new system was simple, many workers fled into the countryside and never returned to their government provided job. This led to other problems for the Chinese and eventually they decided to permit some degree of capitalism to operate within their formerly socialist utopia.

 

Bernie Sanders Defines the Perfect Socialist Society

Bernie Sanders Defines the Perfect Socialist Society

 

Candidate Bernie Sanders promised a perfect socialist society. He even defined how he would pay for all his free programs, simply tax the top wage earners. This is the one item we have always often discussed and found the main problem with this concept. When a politician claims they will tax the top 1% or there abouts, who are the people you think they refer to? We are willing to bet that most of you are getting their target totally wrong. They are not going to be taxing the billionaires and those who hold over three-quarters, if not more, of the wealth. To tax these billionaires one would be required to pass a wealth tax, not an income tax. All they are doing by taxing the top earners is making sure that people who work unbelievably hard will never enter the billionaires club because they will be taxed sufficiently to prevent them accruing such wealth. The billionaires do not make salaries, they invest and as long as they continue to reinvest their billions, then they will never pay any tax. When they do finally take some of their profits from their investments, they can often write paying capital gains tax off by taking a sum equal to a loss they took in an investment, thus these people rarely pay any tax. They are all but immune from income tax as if they have a paid position, they make sure to be paid in stock options and other perks which are not taxable.

 

To pay for socialism one would be required to have a new form of tax, a wealth tax which would basically be put in place to take the cash the truly wealthy have which is beyond income taxes. There have been leaders of nations who actually used a warped version of a wealth tax, they simply took control of the country, stole the wealth from the most wealthy people and simply shot them as being evil capitalists who were criminals for hoarding their disproportional wealth. This was done by the Castro brothers in Cuba which was the position which Che Guevara claimed he enjoyed beyond description, lining people against the wall and shooting them. One quote from Che reads as follows, “To send men to the firing squad, judicial proof is unnecessary. These procedures are an archaic bourgeois detail. This is a revolution! And a revolutionary must become a cold killing machine motivated by pure hate. We must create the pedagogy of the paredón [execution wall].” This man had a medical degree and was actually a physician but rather than save lives, he chose to take lives. Why were the murders necessary for the revolution in Cuba, because they required the wealth that the land owners held and also desired to take their land. This was similar in many of the communist and socialist revolutions where they promised the masses they would give them the farms, as that was often the wealth of the nation. One can guess what happens when you shoot the farmers and give your revolutionary soldiers the farms as a reward. Very soon, you find that soldiers do not make the greatest farmers and without the farmers, hunger is soon to follow and that was part of the collapse of the economy as well in many of the socialist revolutions.

 

Finally, we would like to disabuse people of a misconception we have heard a few too many times. This is that Robin Hood was a socialist. This is not true as the concept that he stole from the rich and gave to the poor, the rallying cry of far too many socialists, not in these exact words, it is usually stated as universal healthcare, guaranteed minimum wage, guaranteed employment, free college education and free computers, cell phones and anything else which is considered required to be part of the modern age. Robin Hood stole from the Sheriff of Nottingham and returned the funds from the governing body, the Sheriff of Nottingham, to the over taxed people. Robin Hood was giving the peasants and workers, mostly farmers and herdsmen, a tax refund, a sorely needed tax refund. When people came and took refuge with Robin Hood they were assigned tasks they were required to perform, a job to earn their keep. Robin Hood was attempting financial stimulus through a tax refund so the farmers and herdsmen could return to actually working with proper funds to sustain their farms and herds such that they could make a living and earn their way. Finally, believe it or not, Robin Hood was and still remains a fictional character. If only socialism had become a social construct which has been proven repeatedly to result in failure and misery and this relegated to the ash-bin of history, but there are those who still believe that this time it will work because they are the people who can perform a socialist society the right way. The Chinese figured out the right way to run a socialist society, by introducing a sizable capitalist segment within the society which is freed up enough to thrive and thus pay for the socialist projects of the governance. But as soon as you start a little capitalism, you will eventually end with a whole lot of capitalism as you will soon realize that greed is a great motivator and when you allow people to better their position in life, you can have an amount of socialism on the side paid for by your burgeoning capitalist economic engine.

 

Beyond the Cusp

 

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