Tag: Warren Buffett

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free trade & free markets general freedom ideological culture nannyism national politics & policies responsibility

Too Much of a Good Thing

Warren Buffett, Coca-Cola, consumer, regulations, consumer protection

Once upon a time, over-​indulgence was considered a sin, a vice.

Not so much, nowadays.

Somewhere along the line, the idea that a little of a good thing was good, that general abundance is good, but that there can be too much of a good thing for any particular person … this latter common sense idea got lost.

I was reminded of this while reading the latest from the nation’s most famous investor: “Warren Buffett set himself on a potential collision course with public health campaigners when he said it was ‘quite spurious’ to lay the blame for obesity and diabetes at the door of fizzy drinks companies, such as his part-​owned Coca-Cola.”

The octogenarian multi-​billionaire Buffet, described as a “renowned Cherry Coke drinker,” defended not only his habit but the company that produced it. He emphasized choice, consumer choice. And he said, “I make a choice to get 700 calories from Coke, I like fudge a lot, too, and peanut brittle and I am a very happy guy.”

It came up because a university study had “linked fizzy drinks to 184,000 deaths annually worldwide.”

Well, name your poison. Some folks over-​indulge in alcohol; others, food; others, fizzy drinks. But Buffet limits his Cherry Coke intake, as common sense would indicate.

Gluttony used to be a vice. It was preached against. The morality of common sense held sway in our culture.

At some point hedonism in the unrestrained sense took hold of many consumers, who can pay a heavy price — if not at the grocery, at the doctor’s office.

No new laws or regulations are needed. Let everyone, billionaire or not, add up their costs and choose.

This is Common Sense. I’m Paul Jacob.

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Warren Buffett, Coca-Cola, consumer, regulations, consumer protection

 

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Categories
free trade & free markets ideological culture insider corruption

Billions and Billionaires

Where do billionaires come from?

Douglas French, president of the Ludwig von Mises Institute, reminds us where the term “millionaire” came from. It was

coined in 1720 during John Law’s “Mississippi Bubble” to describe those making vast fortunes in Law’s Mississippi Company stock that rose from 150 livres to 10,000 in the matter of months. But just as quickly, the stock and the currency wildly inflated by Law’s Banque Royale, crashed and Law was forced into exile.

Today’s plethora of billionaires — which in 15 years has increased fivefold — is (argues French) at least in part the result of Ben Bernanke’s monetary manipulations. He’s the John Law of our time. “What were once Law’s millionaires are now Bernanke’s billionaires.… Bernanke has been on the job for six years, and the Gates, Buffetts, and Slims of the world are reaping the benefit. But for how long?”

Keeping track of today’s billionaires has become both a form of popular entertainment (Forbes’s list) as well as a topic for careful study. The political “philanthropy” of George Soros and Charles Koch inspires both enthusiasm and dread in activists, left and right; Warren Buffett has become something of a hero to the 99 percenters, what with his repeated pitches for higher taxes on the rich.

But Buffett is a sly one. He makes his money in a variety of ways — one of which Peter Schiff recently explained: “Buffett actually stated in September 2008 that he would not have invested in Goldman Sachs if not for the implicit guarantee of federal assistance. As a result, he profited at the expense of taxpayers at the very time when they were losing their savings in the markets.”

Not all billionaires are created equal.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy

Fair Share Laid Bare

President Barack Obama says “it’s only right that we ask everyone to pay their fair share in taxes.”

Rich folks must be wondering when their refund checks will start arriving in their mailboxes.

The current income tax is progressive, requiring those making more to pay a higher rate. Thus, those earning a million dollars pay, on average, 29 percent of their income to Uncle Sam, while those taking home $50,000 to $75,000 a year pay an average of 15 percent. This progressivity can be seen in wide angle, too: Figuring credits and exemptions, 47 percent of Americans pay no federal income tax at all. Meanwhile, the top ten percent in income pay 73 percent of all income taxes collected.

And Obama’s idea of taxing “the rich” would only make it more unfair.

But, wait, what about billionaire Warren Buffett? Doesn’t he pay a lower percentage of his income in taxes than does his secretary?

Most of Buffett’s income comes off his investments, not in salary. That’s capital gains, taxed at 15 percent. Obama decries it, but doesn’t propose any specific increase in capital gains taxes. Why? He doesn’t want the stock market to crater. As he put it two years ago, “The last thing you want to do is raise taxes in the middle of a recession.”

So, when President Obama says the rich should pay their fare share, what does he mean? Simple: “If you’re not rich, vote for me.”

This is Common Sense. I’m Paul Jacob.