Tag: money

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ideological culture political economy

Cash Machine Cachet

cash machine, ATM, money,

Shutting down capitalism almost worldwide may prove to be the grandest disaster of all time. Folks on the margin of poverty in poor countries are already starving. Though scads of people seem to think we could ride out a lockdown indefinitely just by cashing government checks, the problem is that if we don’t produce, we cannot buy and consume products. 

It’s not about money, or profits as such: “It’s the productivity, stupid!” 

Elon Musk put it this way: “If you don’t make stuff, there’s no stuff.” 

A “universal basic income” won’t help if the re-​distributed money chases few-​to-​no goods.

So how did we come to believe that we can just shut down most business activity and still survive?

Maybe the idea seems plausible because many people already do not work to survive. As their numbers have increased, our civilization has forgotten that they survive upon the work of others. 

We guffaw at young children who, when their parents say something they want is too expensive, they innocently respond, ‘well, just go to the cash machine!’ But the more people rely upon checks and bank deposits from the government — for any reason — the harder it is to remember that the power to buy stuff doesn’t ultimately come from government. With taxation, redistribution and inflation thrown into the mix, even adults think of government as Cash Machine. 

And the Cash Machine as a model for the economy.

To fight a virus, the world has shut down production — as if we do not survive by producing goods in order to consume them.

Government has reduced capitalism — and us — to absurdity.

This is Common Sense. I’m Paul Jacob.

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cash machine, ATM, money,

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First Amendment rights insider corruption national politics & policies

Worse Than Hypocrisy

Joe Biden, Obama, medal, money, campaign finance,

“You shouldn’t accept any money from a Super PAC,” former Vice-​President Joe Biden claims he advised his presidential rival Sen. Bernie Sanders, “because [if you do] people can’t possibly trust you.”

Now it must be impossible to trust Mr. Biden.

“Joe Biden is apparently dropping his long-​held opposition to the creation of an outside group,” the media tepidly informed last week, “that would supply an infusion of money to benefit his campaign.”

That is: the dreaded Super PAC.

In his 2017 book, Biden claimed he would not have accepted such “outside” support had he entered the 2016 contest — even though he “knew there was big money out there for me.” 

Why not? “[I]n a system awash with money,” the former VEEP wrote, “the middle class didn’t have a fighting chance.” 

What changed? Now this drowsy Democrat actually needs campaign cash! 

“Biden has struggled to raise money, and last week, his campaign reported having $9 million on hand,” reports The Washington Post, “roughly a third as much as some of his top Democratic rivals.”

Necessity is the catalyst of hypocrisy?

“As president, Joe Biden will push to remove private money from our federal elections,” his campaign explained. “He will advocate for a constitutional amendment to overturn Citizens United and end the era of unbridled spending by Super PACs.”

Your private money and mine has as much right to engage in federal elections as Mr. Biden does. And I’ve warned  many times about the free-​speech repealing amendment the doddering Democrat frontrunner is pushing.

There may be worse things than hypocrisy, but there are few things worse than opposing First Amendment rights.

This is Common Sense. I’m Paul Jacob.

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Joe Biden, Obama, medal, money, campaign finance,

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national politics & policies too much government

Make Deficits Great Again?

money, case, window, floating, deficit, spending,

Is Donald Trump really “draining the swamp”? 

It’s overflowing.

Stan Collender, writing last year in Forbes, noted just what a big spender the president really is. Now, an update: fiscal year 2019 sports a deficit of $1.09 trillion, up considerably from the $897 billion projected earlier this year; the next year is expected to nudge the deficit even higher, to $1.1 trillion.

The whys aren’t a mystery: it is politically difficult to cut an expected benefit to any constituency. It looks stingy — though it is the very opposite. Spending other people’s money — including taxpayers’ — is not generosity. For a politician, it is naked self-​interest. Buying votes.

Worse than merely corrupt, it’s corrupting — since the People are increasingly tempted to look to government to supply special voting bloc advantages rather than the mutual, universal advantage of liberty and justice for all.

Collender speculated that a $2 trillion deficit is “definitely within view” because “Trump is demanding that federal spending and the government’s red ink be increased even further.”

Judd Gregg, writing yesterday for The Hill, summarizes current GOP fiscal policy as “now the most profligate and debt-​driving party in the nation’s history.” 

He’s not wrong, but I question his next line: “Fiscal restraint is no longer part of the cloth the Republican Party wears.”

Careful wording. 

Republicans sometimes talk a good game, but are known to be big spenders when not opposing a Democratic president. The Class of 94 was effective against Bill Clinton. Under unified government in the aughts, though, under George W. Bush, they went on a spree.

Maybe Republicans just need a good enemy.

Bernie Sanders for President? 

Perhaps any socialist Democrat will do.

This is Common Sense. I’m Paul Jacob.

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money, case, window, floating, deficit, spending,

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national politics & policies political economy Popular

Re-​Packaging Nonsense as Wisdom

green new deal, AOC, money, folly

When committed to folly, clever people make it look wise.

An article last week in Forbes, “The Green New Deal: How We Will Pay For It Isn’t ‘A Thing’ — And Inflation Isn’t Either,” by Robert Hockett, says that “how could we pay for it?” challenges have already been answered best by Rep. Alexandria Ocasio-Cortez. 

She demands to know why only “useful ideas,” like hers, get challenged that way. “Where were the ‘pay-​fors’ for Bush’s $5 trillion wars and tax cuts, or for last year’s $2 trillion tax giveaway to billionaires?”

Where? Here!

And anywhere there’s common sense.

Hockney has his own retort, though, retrieving from the peanut gallery of economics an idiocy called “Modern Monetary Theory” (MMT). 

“Congress will authorize necessary spending, and Treasury will spend,” he writes. Government funds are “never ‘raised’ first” because “federal spending is what brings that money into existence.” 

Look, the United States has indeed come to rely upon debt financing. But it wasn’t always the rule. More importantly, the widespread and long-​term effects are where post-​gold standard monetary creation gets tricky. 

So are MMT advocates. Tricky, that is. What they hide are the dispersed costs, many of which we pay in higher prices.

Their main “contribution” — as stated in the National Review, of all places, yesterday — is that “When a government issues its own currency, as our federal government does, it is in a financial situation different from those of most institutions or households.”

Not really. When a household writes checks it knows will bounce, it does pretty much the same thing.

When governments rely upon debt money, someone is still getting ripped off. With government, though, it isn’t the businesses holding bad checks, it is all of us.

This is Common Sense. I’m Paul Jacob.

N.B. This episode of Common Sense has been corrected from the email version: the author of the Forbes article is not the painter David Hockney.

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green new deal, AOC, money, folly

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initiative, referendum, and recall tax policy

The Green in the Evergreen State

money, global warming, carbon, tax, climate

We’re told of the scientific consensus on global warming. Whatever you may say about that consensus (I’ve expressed extreme skepticism), no such consensus exists for what steps would be best to take to deal with the identified problem — which is usually understood in terms of the “carbon footprint,” of carbon put into the atmosphere in excess of what is taken out.

Most proposals for curbing carbon emissions have been shown to be far more costly than efficacious.

Nevertheless, without such a consensus, activists in Washington State are pushing Initiative 1631, a measure to tax carbon.

They had pushed a very similar measure two years ago, as science writer Ronald Bailey notes at Reason. The measure failed, however, because environmental lobbies opposed it. You see, the collected funds were given back to taxpayers. Environmental groups didn’t get a cut of the action.

This time that defect has been alleviated, and those groups are on board.

Ah, money, money, money! 

The Evergreen State, indeed.

Would the tax be effective? The goal of the measure is “to reduce, by 2035, [the state’s] emissions by 25 percent below their levels in 1990,” Bailey explains. The state had “emitted about 88 million metric tons that year, so that implies a reduction of around 22 million tons by 2035. Assuming today’s emissions, that would mean that Washington State’s planned reductions would amount to 0.42 percent and 0.06 percent of U.S. and global emissions respectively.”

Not much bang.

Sure, the measure may win on hope … and bucks.

But will it do any appreciable good? I mean, other than creating a constituency with the green of dollars.

This is Common Sense. I’m Paul Jacob.

 

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ballot access general freedom initiative, referendum, and recall media and media people Regulating Protest

Three Bad Propositions

initiative, petition, power, money, elections

Two propositions on this November’s California ballot, Propositions 8 and 11, have found an opponent.

“Both would have voters decide very narrow union-​management conflicts in two relatively small medical service sectors,” explains Dan Walters, long the dean of California columnists. Unions are sponsoring Prop 8, which “purports to limit profits in clinics that provide dialysis treatments to sufferers of kidney failure.” Ambulance companies are behind Prop 11, which would “require ambulance crews to remain on call during meal and rest breaks.”

Walters thinks it “foolish to expect November’s nine-​plus million voters to make even semi-​informed decisions about their provisions, much less understand how dialysis clinics and ambulance services operate, or should operate.”

Well, yes, but this criticism applies to government universally. Legislators don’t understand how every business or industry functions, or should function, either. Even when politicians pretend to comprehend, by what right do they micromanage other people’s businesses and labor contracts?

Freedom, not government regulation, should be the default position.

But Walters’ fix runs against this logic. He thinks that upping the required percentage of signatures for ballot placement “by half … might discourage the misuse of the system for issues that cannot be fairly and rationally decided by voters.”

Don’t bet on it.

As Walters himself admits, making it tougher and more expensive to petition a measure onto the ballot won’t block the well-​heeled: “any interest group with a few million bucks and an axe to grind can qualify a ballot measure, regardless of their merits.”

But it would disenfranchise grassroots groups.

Defeat bad measures; don’t destroy the democratic process.

This is Common Sense. I’m Paul Jacob.

 

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