Category Archives: Cato Institute

We got to shutdown government waste now!!!

We got to shutdown government waste now!!!
October 2, 2013 11:16AM

Shutdown Could Shut Down Waste

A benefit of the government shutdown may be that it slows the stream of waste and bad behavior flowing from the federal bureaucracy. Catching up on my reading, I noticed these items in just the last few days of the Washington Post:

  • The maximize their budgets over time, federal agencies drain their bank accounts on often wasteful items at the end of every fiscal year. The rule is “use it or lose it.”
  • A high-level EPA official ripped-off taxpayers $900,000 over two decades, apparently duping administrators, supervisors, and auditors over many years.
  • About $800,000 of federal unemployment insurance benefits were bilked by employed D.C. government workers.
  • The availability of federal subsidies for dredging may induce Key West to destroy an area of unique coral and other sea life. Historically, the Army Corps of Engineers has been an environment-destruction machine, so residents should think twice before going that route.
  • The Department of Commerce has kicked out the National Aquarium from its building after 80 years. There is no bad behavior here, just a sad story since the aquarium is an example of successful privatization. Federal funding was eliminated in 1982, and the aquarium was converted into a nonprofit corporation and supported by admission fees, donations, and volunteer efforts.
  • The FHA is asking for a $1.7 billion taxpayer bailout.
  • Environmentalists are concerned that grasslands and wetlands are being turned into farmland at a rapid pace across the northern prairies. This story mentions the effect of ethanol subsidies, but another cause of the change is the $30 billion of farm subsidies pumped out each year.
  • The central figure in the IRS scandal, Lois Lerner, was finally pushed out. It is pretty obvious that a political and ideological agenda was at work in the targeting of conservative groups, but it has been very difficult to squeeze even an apology out of IRS officials and the Obama administration. Bart Simpson’s line “I didn’t do it” has long been the approach taken by government officials caught violating the public trust.
  • A recent Washington Post article by Joe Davidson—the paper’s advocate for federal workers—was headlined “Shutdown Would Corrode Our View of Government.” I don’t think we need a shutdown for that.

Related posts:

A suggestion to cut some wasteful spending out of the government Part 1 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 31)(Brummett suggests we have wasted our time listening to Pryor’s pledge to cut spending)

Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to do so in the future. Here are a few more […]

We need to stop wasteful government spending by privatizing the post office!!

We need to stop wasteful government spending by privatizing the post office!! Postal Service Won’t Shut Down but Will Default on Its Debt James Gattuso October 1, 2013 at 9:30 am Newscom The U.S. Postal Service (USPS) defaulted on its debt last night. No, it has nothing to do with the partial shutdown of the […]

Open letter to President Obama (Part 420) Bailouts are legal corruption

(Emailed to White House on 1-14-13.)

President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

There is no free money out there. Somebody has to always pay.

Bailout Nation

January 13, 2013 by Dan Mitchell

I have a serious question for readers. What’s worse, bailouts for government or bailouts for the private sector?

Yes, both are bad, but is it worse to bail out a bankrupt entitlement program, such as Social Security, or it is worse to bail out an industry, such as the financial sector?

Bailout gravy train cartoonTo bail out the housing sector, or to bail out Medicare? Fannie and Freddie, or GM and Chrysler?

All these examples involve huge amounts of money, and both private-sector and public-sector bailouts have perverse long-run effects, but which is worse?

And don’t forget there are lots of other bailouts in our future, as discussed on this interview for Fox Business News.

The interview took place before Christmas, but the topic is even more relevant today since the budget season is about to begin.

Most of the discussion was about government agencies and programs that may get more handouts, though bailouts for the Federal Housing Administration and the Pension Benefit Guaranty Corporation would be indirect bailouts for big business and housing.

So we’d get the worst of all worlds, more government spending and more cronyism.

Or, as they call it in Washington, a win-win situation.

But I call it legal corruption.

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

Between 1988 and 2011, the amount of the U.S. population that receives assistance from the federal government grew by 62 percent (includes cartoon)

Big government will destroy the human spirit.

After the poll I shared the other day, this cartoon seems appropriate.

Maybe the better lesson to be learned, thought, isn’t that we should fear big government (though we should, as this t-shirt makes clear), but that statism destroys the human spirit.

If we don’t have entitlement reform soon then we will see the programs go bankrupt in the next couple of decades. Here is a first step that we can take below. Watch this great video below:

Social Security vs. Private Retirement

Is Social Security a good retirement plan? Economics professor Antony Davies shows that Americans stand to earn significantly less and assume more risk with Social Security than other investment options. According to Davies, taxpayers would be better off both in terms of financial security and return on investment by investing their money privately. Social security is extremely expensive, soon to be insolvent, and doesn’t even offer taxpayers the most bang for their buck. For those reasons, Prof. Davies argues that it is time for the government to phase out Social Security. Davies’ solution: the government should honor its obligations to current retirees while giving Americans the freedom to invest their money as they see fit.

_____________________________

U.S. Government Increases National Debt—and Keeps 128 Million People on Government Programs

By and
January 8, 2013

Abstract: Between 1988 and 2011, the amount of the U.S. population that receives assistance from the federal government grew by 62 percent. That means that more than 41 percent of the U.S. population is enrolled in at least one federal assistance program. To make matters worse, per capita expenditures on recipients are rising as well. In 2010, over 70 percent of all federal spending went to dependence-creating programs. That growth is unsustainable, as baby boomers are now retiring every day and their entitlements cost more each year. The publicly held federal debt will exceed 100 percent of GDP in 2024. Such a high level of debt always hurts an economy—and the people who live in it. The time for Congress to reform dependence-creating government programs is now.

The number of people receiving benefits from the federal government in the United States has grown from under 94 million people in 2000 to more than 128 million people in 2011. That means that 41.3 percent of the U.S. population is now on a federal government program. The 128 million is an estimate based on the recently released March 2011 U.S. Census Bureau Current Population Survey (CPS), which, due to the survey methodology, most likely undercounts the actual number.

Heritage Foundation calculations using the March 2011 CPS found the number of people who receive assistance from at least one federal program to be 128.8 million. Using the Census Bureau number for the U.S. population in July 2011, which was 311,591,917, at least 41.34 percent are federal government program beneficiaries.[1] While very few Americans would deny that the federal government should play a role in aiding those in need, this number doubtless qualifies as far too large, indicating that taxpayer dollars are going to those not in need as well.

Many of those who receive benefits from the federal government could live well without them, so they do not count as truly dependent on the federal government.[2] Warren Buffett is the beneficiary of a federal program—Social Security—but, since he does not rely on that income for his livelihood, he should not be considered dependent on government programs. Others depend on the programs for nearly all of their income, housing, health care, food, and other needs and so fall under the classification of truly dependent on the government. Still others are somewhere in between, depending on government financing for, say, college, but little else. Consequently, it is important to note that stating that 128.8 million people receive benefits from a government program does not mean that all of them are dependent on the government.

The Numbers

In the CPS, the Census Bureau surveys thousands of U.S. citizens and non-citizens living in the U.S. in randomly drawn monthly phone surveys. Together, the roughly 60,000 households surveyed are a representative cross section of the U.S. population. While the CPS is conducted each month, the March survey has the most detailed questions. Only the March CPS survey format contains a sufficient level of detail to count federal government program participants.

The responses to the March 2011 CPS have now been released, and these individual responses were sorted for this report. All of the data were examined for responses by individuals who answered affirmatively that they were receiving benefits at the time of the survey. Based on their responses, Heritage created a new dataset from those who responded that they receive financial or in-kind benefits from at least one government program. By counting the individuals in that dataset, and using a weight assigned by the Census Bureau to each individual, the weighted number of people who depend on government programs was found.

The new dataset of people on government programs can then be further sorted to find out how many people say they are on a particular program. Here are some of the resulting numbers:

  • 128,818,142 people are enrolled in at least one government program.
  • 48,580,105 people are on Medicaid.
  • 35,770,301 people receive their retirement income from Social Security.
  • 43,834,566 people are on Medicare.
  • 39,030,579 people are living in a household where at least one person accepts food stamps.
  • 6,984,783 people are living in subsidized rental housing.
  • 2,047,149 people are receiving a higher-education subsidy.

It is important to note that the above categories overlap; for example an individual may receive both subsidized rental housing and food stamps. The total number—128,818,142 people on at least one government program does not double count individuals, however.

The 128,818,142 figure for people enrolled in at least one program is surely an undercount: The CPS responses are well known to undercount those receiving Medicaid, Medicare, Social Security, State Children’s Health Insurance, higher-education support, and Temporary Assistance for Needy Families.[3]

The undercount in higher-education subsidies may be the most important, because recipients of education subsidies are generally younger and not likely to be enrolled in other programs. Sorting the March 2011 CPS data shows that, of the two million people in the survey who responded that they receive higher-education subsidies, fewer than one half of 1 percent relied on Social Security retirement income; only 1.5 percent were also on Medicare; and only 16 percent received food stamps. The 2 million people who stated they receive higher-education subsidies are assuredly much fewer than the actual number, since the number of people receiving Pell Grants alone in 2011 was 9.7 million.[4] It is not known why the undercount in education subsidies is so large, but it is likely related to the weights the CPS uses to represent college students. Therefore, even counting only Pell Grant recipients would add millions to the lowball estimate of 128.8 million total people who receive assistance from a government program.

Housing subsidies are also most likely undercounted. According to the March 2011 CPS, only 6,984,783 individuals live in subsidized rental housing. Other government data puts the number at 4,952,191 households in 2010, not individuals.[5] Again, the weights used in the survey may contribute to the shortfall.

Growth in Number of People on Government Programs Over Time

The rate of growth in the number of people who are enrolled in a federal program far outpaces general population growth. (See chart.) In fact, an analysis of the March 2011 CPS responses going back to 1988 reveals that the number in March 2011 (128,818,142) is 62 percent higher than it was in March 1988 (79,592,924). Meanwhile, the U.S. population has grown only 27 percent since that year. In other words, the number of people who are enrolled in at least one federal program has grown more than two times faster than has the U.S. population. That growth is unsustainable as baby boomers are now retiring every day, and their entitlements cost more each year. The publicly held federal debt will exceed 100 percent of gross domestic product (GDP) by 2024.[6] Such a high level of debt always slows an economy.[7] One need look no further than the current situations in Greece, Italy, or Spain to see what high levels of national debt do to a country’s economic health. The European Union now faces a recession because of the debt its members owe. Shrinking economies are bad for everyone who lives in them, but they especially hurt the young, who have much higher rates of unemployment than older workers.[8] Shrinking economies make it even harder for young workers to find jobs. Their very futures are the ones in peril because of that debt.

While the number of people on a federal program has grown too fast, the average amount spent per capita has greatly outpaced even that level. (See chart.) The Heritage Foundation’s Index of Dependence on Government has been released annually since 2002. It tracks the amount of money that is spent on federal-assistance programs.[9] The data is in constant 2005 dollars, meaning that the amount spent increases or decreases due to government policies, not inflation. Between 1988 and 2011, spending on dependence-creating federal government programs has increased 180 percent.[10] versus “only” a 62 percent increase in the number of people who are enrolled in federal government programs, and a 27 percent increase in the population. Not only are more people enrolled in government programs than ever before, but more U.S. taxpayer dollars are being spent on each recipient every year.

What the Numbers Mean

What these alarming numbers mean is that a large proportion of the people in the United States have two kinds of income: (1) money that they or their family have earned, and (2) money transferred to them from U.S. taxpayers through the vehicle of a federal government program. Those consuming the second kind count for over 128.8 million individuals—41.3 percent of the population. According to Wall Street Journal research, when counting the number of people who live in a household where at least one person is on a government program, the dangerous tipping point of half of all Americans is nearly reached.[11] at 49.1 percent.

If one person in a household receives federal assistance, it is often the case that all members of that household do. This is certainly the case for food stamps: If a family shares meals and one of the relatives accepts food stamps, all members of that household are using those food stamps for part of their food.[12] If one person in a household receives a rent subsidy, everyone who lives in the home is a recipient.

The Clock is Ticking

The time to reform dependence-creating government programs is now. In 2010, over 70 percent of all federal spending went to dependence-creating programs.[13] It went to subsidize the living expenses of over 128.8 million individuals in the U.S. in 2011, which was more than 41 percent of the U.S. population. When the percentage of those living in a household where at least one person is subsidized is calculated, the number tops 49 percent. The problem is too much government subsidizing, and too much transfer of wealth from taxpayers to those who pay fewer and fewer taxes. After all, government does not create wealth by spreading it around.

Congress would do well to remember that there are no free subsidies and benefits. The government today is borrowing from future taxpayers to pay the current government program enrollees. The game will soon be up as debt approaches 100 percent of GDP. The United States should not owe 100 percent of all the goods and services produced in a year to its debtors. It is time for across-the-board entitlement reform so that the red ink does not drown America’s babies as they grow older and seek out their vision of the American dream. It is time for elected officials to restore America’s future for kids today who deserve to live in the great land of opportunity that America has been for the generations that came before them—instead of being bound to pay off a mountain of debt that they had no part in creating and that they should not have to face.[14]

Patrick D. Tyrrell is Research Coordinator in the Center for Data Analysis, and William W. Beach is Director of the Center for Data Analysis, and Lazof Family Fellow in Economics, at The Heritage Foundation.

Earning your way through the Free Enterprise is the best way to financial success!!!!

Don’t Eat Your Dog: The Surprising Moral Case for Free Enterprise

Published on Jul 10, 2012

http://arthurbrooks.aei.org Government keeps growing — and freedom keeps shrinking — because we fail to make the moral case for free enterprise. Based on his best-selling book “The Road to Freedom,” AEI President Arthur C. Brooks explains how we can win the fight for free enterprise by articulating what’s written on our hearts. “We have to see that we’re not in an economic battle for the future of America,” Arthur says. “We’re in a moral battle.”

____________________

Earning your way through the Free Enterprise is the best way to financial success!!!!

Sometimes you find support for capitalism and small government in some rather unexpected places.

I was surprised, for instance, when I found out that Gene Simmons, the lead singer for Kiss, stated that, “Capitalism is the best thing that ever happened to human beings. The welfare state sounds wonderful but it doesn’t work.”

That’s pretty hard core.

Bad news for Denmark’s Lazy Robert?

Or what about the Finance Minister of Denmark’s left-wing government, who admitted that, “We live in a world of global competition for jobs… That requires a modernization of the welfare state.”

That’s not hard core, to be sure, but it certainly suggests that he understands the need to reduce the burden of government spending.

And my jaw hit the floor when I read that former KGB bigwig Vladimir Putin remarked that, “Many European countries are witnessing a rise of [the] dependency mentality when not working is often much more beneficial than working. This type of mentality endangers not only the economy but also the moral basics of the society.”

I’m not about to take lessons in societal morality from a strongman like Putin, but it’s nonetheless surprising that he recognizes that handouts can turn people into supplicants.

So after reading all these examples, perhaps you won’t be overly shocked to learn that Bono, head of the famous U2 band, is a supporter of capitalism. He’s no Milton Friedman, as you’ll see, but check out this quote from an interview in the Guardian.

My father was Labour, classic Dublin Northside household. And I still carry that with me. And though I believe that capitalism has been the most effective ideology we have known in taking people out of extreme poverty, I don’t think it is the only thing that can do it, and in some ways I wish it wasn’t.

Even with his caveats, it’s big news when one of the world’s leading anti-poverty campaigners acknowledges that free markets are the best tool for improving the lives of poor people.

“Please don’t use naughty words like capitalism in my presence”

Bono’s comments sort of remind me of when the former leftist president of Brazil remarked that, “…it was necessary to first build capitalism, then make socialism, we must have something to distribute before doing so.”

Neither Lula nor Bono are libertarians, of course, but at least their views are rooted in reality. Which is more than can be said for many of the people in Washington who have never produced anything and have no idea how markets actually work.

Perhaps even more stunning is the fact that Bono defends tax competition and fiscal sovereignty.

…at the heart of the Irish economy has always been the philosophy of tax competitiveness. Tax competitiveness has taken our country out of poverty. People in the revenue accept that if you engage in that policy then some people are going to go out, and some people are coming in. It has been a successful policy. On the cranky left that is very annoying, I can see that. But tax competitiveness is why Ireland has stayed afloat.

Wow, there’s no ambiguity to that statement. I’d like to think he’s knowledgeable about the benefits of tax competition because he’s watched my videos or read my writings, but the real story is that he lived through and personally experienced the Irish miracle.

He saw his relatively poor country become very successful, in large part because of big improvements in tax policy. And he obviously understands the importance of maintaining Ireland’s low corporate tax rate (which I’ve also argued is very important to keep Ireland from sinking further into statist stagnation).

Let’s close with a couple of additional examples of folks on the left who have confessed some very un-PC thoughts, such as the New York Times columnist who bravely wrote that, “This is painful for a liberal to admit, but conservatives have a point when they suggest that America’s safety net can sometimes entangle people in a soul-crushing dependency. …Most wrenching of all are the parents who think it’s best if a child stays illiterate, because then the family may be able to claim a disability check each month.”

“We’ve learned from you that communism doesn’t work”

Perhaps most amazing is that a high-ranking official from China’s communist government stated that, “If you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of the worn out welfare society. I think the labour laws are outdated. The labour laws induce sloth, indolence, rather than hardworking. The incentive system, is totally out of whack.”

Last but not least, surely it’s big news that even Fidel Casto confessed that, “The Cuban model doesn’t even work for us anymore.”

P.S. Sometimes even Obama says reasonable things, such as the time he remarked that “No business wants to invest in a place where the government skims 20 percent off the top.” Or the time he said that it was best to ““let the market work on its own.” Unfortunately, when you read the fine print and look at the context, there’s no indication that the President actually has learned anything about economics.

P.P.S. My favorite examples of liberals crossing the ideological aisle are Justin Cronin and Jeffrey Goldberg, both of whom wrote very powerful anti-gun control columns.

 

Related posts:

Open letter to President Obama (Part 281)

Ronald Reagan – States’ Rights Published on Sep 12, 2012 by LibertyPen In 1967, newly elected California governor Ronald Reagan sat down with William F. Buckley Jr to discuss states’ rights. ___________   President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 […]

Open letter to President Obama (Part 279)

Ronald Reagan Describes Milton Friedman Uploaded by CommonSenseCap on Oct 2, 2011 _________   President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for […]

Video: The Moral Case for Free Enterprise

The Moral Case for Free Enterprise July 10, 2012 by Dan Mitchell A couple of months ago, I discussed a column by Arthur Brooks, in which he explained that libertarians and conservatives need to make a moral argument for capitalism and not just rely on statistics and economic analysis. This is correct, I believe, and I […]

“Friedman Friday” Milton Friedman on the issues of poverty and equality

Milton Friedman with his good friend Ronald Reagan. Milton Friedman – Poverty and Equality Uploaded by LibertyPen on Feb 18, 2011 In response to questions, Professor Friedman explains how capitalism is a more effective approach to the alleviation of poverty than is socialism. _________________ Milton Friedman had to put up with someone yelling during his […]

Romney: “Milton Friedman understood…Government does not create prosperity. Free markets and free people create prosperity.”

Ronald Reagan – States’ Rights Published on Sep 12, 2012 by LibertyPen In 1967, newly elected California governor Ronald Reagan sat down with William F. Buckley Jr to discuss states’ rights. ___________ People should pay attention to the writings of Milton Friedman did. Ronald Reagan owes a lot of his success to the beliefs of […]

Milton Friedman was the man behind Reagan’s success

Ronald Reagan Describes Milton Friedman Uploaded by CommonSenseCap on Oct 2, 2011 _________ Stephen Moore in the Wall Street Journal rightly noted: In the 1960s, Friedman famously explained that “there’s no such thing as a free lunch.” If the government spends a dollar, that dollar has to come from producers and workers in the private […]

Open letter to President Obama (Part 145)

Milton Friedman – Poverty and Equality Uploaded by LibertyPen on Feb 18, 2011 In response to questions, Professor Friedman explains how capitalism is a more effective approach to the alleviation of poverty than is socialism. _________________ Milton Friedman had to put up with someone yelling during his speech in the clip above but he handles […]

Evangelical review of the question: “Was Ayn Rand right?” (Part 4)

Ayn Rand on the Purpose of Life In this short clip below you will hear that Rand Paul read several books by Ayn Rand and later read several books that she liked. Take a look below as Ayn Rand answers a religious question about meaning in life. I have written on Milton Friedman’s religious views earlier […]

Evangelical review of the question: “Was Ayn Rand right?” (Part 2)

  Ayn Rand Mike Wallace Interview 1959 part 2 Was Ayn Rand Right? Article ID: JAF1324 By: Jay W. Richards Synopsis In response to the critics of capitalism, many conservative Christians turn to philosopher Ayn Rand for ammunition. Rand was a staunch defender of capitalism, but also an anti-Christian atheist who argued that capitalism was […]

Reason Magazine’s rightly praises Milton Friedman but makes foolish claim along the way

I must say that I have lots of respect for Reason Magazine and for their admiration of Milton Friedman. However, I do disagree with one phrase below. At the end of this post I will tell you what sentence it is. Uploaded by ReasonTV on Jul 28, 2011 There’s no way to appreciate fully the […]

Stephen Davies on cutting government spending (includes cartoons)

When Governments Cut Spending

Uploaded on Sep 28, 2011

Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending cuts did not cause economic stagnation. In fact, the spending cuts often accelerated economic growth by freeing up resources for the private sector.

________________

We got to cut our spending or we will end up in Greece. Why can’t we look at successful examples of controlling spending and learn from them and stay away from the examples like Greece.

Let me start this post by stating that George W. Bush was a bigger spender than Barack Obama (though the numbers are somewhat distorted by TARP, which caused a big increase in the burden of spending during Bush’s last fiscal year and artificially dampened outlays in Obama’s first fiscal year since repayments from the banks counted as negative spending).

So I’m not trying to make a partisan point by sharing these cartoons. I don’t like it when Democrats increase the burden of government spending and I’m equally dismayed when Republicans engage in same type of profligacy.

That being said, I was a big dumbfounded when President Obama recently claimed that there’s not a spending problem in Washington.

We know that the United States has a huge long-run problem with deficits and debt according to both the Bank for International Settlements and the Organization for Economic Cooperation and Development.

We also know that tax revenues, measured as a share of GDP, will soon be above their post-World War II average and that the tax burden is expected to increase in coming decades.

So a person would have to be in serious denial to claim that spending isn’t a problem.

Which is the point Eric Allie makes in this cartoon.

Spending Problem Cartoon 1

And the point Robert Ariail makes in this cartoon.

Spending Problem Cartoon 2

Ditto for Bob Gorrell.

Spending Problem Cartoon 3

And Gary Varvel.

Spending Problem Cartoon 4

Last but not least, the great Michael Ramirez.

Spending Problem Cartoon 5.jpg

Gee, it’s almost like we’re seeing a pattern.

And if you like this spendaholic-in-denial theme, you can click here and here for further amusement.

P.S. Oh, by the way, if anybody’s actually interested in how to solve the spending problem (you know, the one that doesn’t exist), we do know the answer.

P.P.S. Remember when Obama claimed the private sector was doing fine? Well, here’s how cartoonists mocked him for that absurd comment.

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy (When Government Replaces Santa Claus)

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control.

Chuck Asay is a superb cartoonist, and he produced one of my all-time favorites, capturing the negative impact of big government.

But this one is quite appropriate for today.

Related posts:

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 2

Max Brantley is wrong about Tom Cotton’s accusation concerning the rise of welfare spending under President Obama. Actually welfare spending has been increasing for the last 12 years and Obama did nothing during his first four years to slow down the rate of increase of welfare spending. Rachel Sheffield of the Heritage Foundation has noted: […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 1

  I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. I think Max Brantley of the Arkansas Times Blog was right to point out on 2-6-13 that Hillary […]

Great cartoon from Dan Mitchell’s blog on government moochers

I thought it was great when the Republican Congress and Bill Clinton put in welfare reform but now that has been done away with and no one has to work anymore it seems. In fact, over 40% of the USA is now on the government dole. What is going to happen when that figure gets over […]

Gun Control cartoon hits the internet

Again we have another shooting and the gun control bloggers are out again calling for more laws. I have written about this subject below  and on May 23, 2012, I even got a letter back from President Obama on the subject. Now some very interesting statistics below and a cartoon follows. (Since this just hit the […]

“You-Didn’t-Build-That” comment pictured in cartoons!!!

watch?v=llQUrko0Gqw] The federal government spends about 10% on roads and public goods but with the other money in the budget a lot of harm is done including excessive regulations on business. That makes Obama’s comment the other day look very silly. A Funny Look at Obama’s You-Didn’t-Build-That Comment July 28, 2012 by Dan Mitchell I made […]

Cartoons about Obama’s class warfare

I have written a lot about this in the past and sometimes you just have to sit back and laugh. Laughing at Obama’s Bumbling Class Warfare Agenda July 13, 2012 by Dan Mitchell We know that President Obama’s class-warfare agenda is bad economic policy. We know high tax rates undermine competitiveness. And we know tax increases […]

Cartoons on Obama’s budget math

Dan Mitchell Discussing Dishonest Budget Numbers with John Stossel Uploaded by danmitchellcato on Feb 11, 2012 No description available. ______________ Dan Mitchell of the Cato Institute has shown before how excessive spending at the federal level has increased in recent years. A Humorous Look at Obama’s Screwy Budget Math May 31, 2012 by Dan Mitchell I’ve […]

Funny cartoon from Dan Mitchell’s blog on Greece

Sometimes it is so crazy that you just have to laugh a little. The European Mess, Captured by a Cartoon June 22, 2012 by Dan Mitchell The self-inflicted economic crisis in Europe has generated some good humor, as you can see from these cartoons by Michael Ramirez and Chuck Asay. But for pure laughter, I don’t […]

Obama on creating jobs!!!!(Funny Cartoon)

Another great cartoon on President Obama’s efforts to create jobs!!! A Simple Lesson about Job Creation for Barack Obama December 7, 2011 by Dan Mitchell Even though leftist economists such as Paul Krugman and Larry Summers have admitted that unemployment insurance benefits are a recipe for more joblessness, the White House is arguing that Congress should […]

Get people off of government support and get them in the private market place!!!!(great cartoon too)

Dan Mitchell hits the nail on the head and sometimes it gets so sad that you just have to laugh at it like Conan does. In order to correct this mess we got to get people off of government support and get them in the private market place!!!! Chuck Asay’s New Cartoon Nicely Captures Mentality […]

2 cartoons illustrate the fate of socialism from the Cato Institute

Cato Institute scholar Dan Mitchell is right about Greece and the fate of socialism: Two Pictures that Perfectly Capture the Rise and Fall of the Welfare State July 15, 2011 by Dan Mitchell In my speeches, especially when talking about the fiscal crisis in Europe (or the future fiscal crisis in America), I often warn that […]

Cartoon demonstrates that guns deter criminals

John Stossel report “Myth: Gun Control Reduces Crime Sheriff Tommy Robinson tried what he called “Robinson roulette” from 1980 to 1984 in Central Arkansas where he would put some of his men in some stores in the back room with guns and the number of robberies in stores sank. I got this from Dan Mitchell’s […]

Gun control posters from Dan Mitchell’s blog Part 2

I have put up lots of cartons and posters from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. Amusing Gun Control Picture – Circa 1999 April 3, 2010 by Dan Mitchell Dug this gem out […]

We got to cut spending and stop raising the debt ceiling!!!

  We got to cut spending and stop raising the debt ceiling!!! When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending […]

Gun control posters from Dan Mitchell’s blog Part 1

I have put up lots of cartons and posters from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control. On 2-6-13 the Arkansas Times Blogger “Sound Policy” suggested,  “All churches that wish to allow concealed […]

Taking on Ark Times bloggers on the issue of “gun control” (Part 3) “Did Hitler advocate gun control?”

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Taking on Ark Times bloggers on the issue of “gun control” (Part 2) “Did Hitler advocate gun control?”

On 1-31-13 I posted on the Arkansas Times Blog the following: I like the poster of the lady holding the rifle and next to her are these words: I am compensating for being smaller and weaker than more violent criminals. __________ Then I gave a link to this poster below: On 1-31-13 also I posted […]

Pro-life Atheist Nat Hentoff on the 19 yr old Ana Rosa Rodriguez the survivor of an abortion attempt

Nat Hentoff is an atheist, but he became a pro-life activist because of the scientific evidence that shows that the unborn child is a distinct and separate human being and even has a separate DNA. His perspective is a very intriguing one that I thought you would be interested in. I have shared before many   cases (Bernard Nathanson, Donald Trump, Paul Greenberg, Kathy Ireland)    when other high profile pro-choice leaders have changed their views and this is just another case like those. I have contacted the White House over and over concerning this issue and have even received responses. I am hopeful that people will stop and look even in a secular way (if they are not believers) at this abortion debate and see that the unborn child is deserving of our protection.That is why the writings of Nat Hentoff of the Cato Institute are so crucial.

Can a Nonperson Be a Victim?

Occasional

by Nat Hentoff
The Washington Post, March 27, 1993

Ana Rosa Rodriguez was born in 1991 without a right arm. Actually, she was not supposed to have been born. Her mother, 19-year-old Rosa Rodriguez, a Dominican immigrant, 7 1/2 months pregnant, had gone to Dr. Abu Hayat on New York’s Lower East Side for an abortion. It was botched; Ana Rosa was born the day after. But in the course of the doctor’s attempts to dismember her the day before, Ana Rosa’s right arm had been torn off.

In February of this year, a jury in New York State Supreme Court convicted Dr. Hayat on a number of counts. One was performing an illegal abortion in the third trimester of pregnancy. While 11 states permit abortions during the final three months, New York prohibits it after 24 weeks.

(If the Freedom of Choice Act passes Congress and is signed by the president, this kind of state restriction will probably no longer be allowed anywhere. The bill leaves the definition of viability — when the fetus can survive outside the uterus — to the physician performing the abortion, not to the individual states.)

Dr. Hayat was also convicted of assault on Ana Rosa because of the arm that had been severed at the shoulder. The convictions are being appealed by the doctor’s lawyer, Ronald J. Veneziano. There would appear to be no basis for appeal on the charge of an illegal abortion after 24 weeks. But Dr. Hayat may well get the assault charge overturned.

His attorney’s argument is that, according to Roe v. Wade, a fetus is not a person. And under New York state criminal law, unless a person is assaulted, no crime has been committed. Justice Harry Blackmun, in writing the majority decision in Roe v. Wade, could not have been more clear:

” … the word, ‘person,’ as used in the 14th Amendment, does not include the unborn.”

If, says attorney Veneziano, the majority of the court had held instead that “the fetus was a person, they would have found themselves in the position of sanctioning murder. They can’t have it both ways.”

The New York state appellate courts will almost certainly agree. And should New York appeal to the United States Supreme Court, I doubt that it would agree to review the case, since there is not a majority to declare that fetuses are persons.

Yet, a sonogram of the 7 1/2-month-old fetus on the day of the mishandled abortion would clearly show a viable, developing human being, who — just a day later — did indeed become an actual person under the Constitution. Of course, she had been a member of our species for quite awhile.

If the assault charges are not dismissed, pro-choice organizations might find it somewhat uncomfortable, though necessary, to submit a Supreme Court brief on behalf of Dr. Hayat’s innocence, under Roe v. Wade, of those assault charges. After Dr. Hayat’s arrest, as Richard Perez-Pena reported in the New York Times, “more than 30 women came forward to say he had botched their abortions, often with serious consequences to their health.” And two other assault counts on which the doctor was convicted concerned an incomplete abortion on Marie Moise, a Haitian immigrant. Reported the New York Times: “Mrs. Moise’s husband, David, testified during the trial that the doctor, who had said the price would be $ 300, stopped midway through the procedure and demanded an additional $ 500.” When Mr. Moise said he didn’t have the additional money, “the doctor forced him to leave the office with his bleeding, semiconscious wife.”

I have gone through criminal complaints against many physicians performing abortions, and abortion clinics, in a number of states. Some are harrowing. Abortion -rights groups might spend more resources on pushing for stricter regulations where those are needed and on monitoring clinics and physicians.

As for the doctor, the attention he has received is due in part — as Scott McConnell, who is pro-choice, has noted in the New York Post — to his having pushed “the reality of abortion in front of our eyes … the fact that every fetus is a potential child is one we’d prefer to hide from ourselves.”

A recent medical textbook, “The Unborn Patient: Pre-Natal Diagnosis and Treatment” (W.B. Saunders Co.) begins: “Only now are we beginning to consider … the concept that the fetus is a patient, an individual.”

If the operation had been successful, there would never have been an individual, Ana Rosa Rodriguez, who has learned to pull herself up and drink from a bottle with her remaining hand.

Copyright 1993 The Washington Post

___________________________

In the past I have spent most of my time looking at this issue from the spiritual side. In the film series “WHATEVER HAPPENED TO THE HUMAN RACE?” the arguments are presented  against abortion (Episode 1),  infanticide (Episode 2),   euthanasia (Episode 3), and then there is a discussion of the Christian versus Humanist worldview concerning the issue of “the basis for human dignity” in Episode 4 and then in the last episode a close look at the truth claims of the Bible.

Francis Schaeffer

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I truly believe that many of the problems we have today in the USA are due to the advancement of humanism in the last few decades in our society. Ronald Reagan appointed the evangelical Dr. C. Everett Koop to the position of Surgeon General in his administration. He partnered with Dr. Francis Schaeffer in making the video below. It is very valuable information for Christians to have.  Actually I have included a video below that includes comments from him on this subject.

_____________________________________

Francis Schaeffer “BASIS FOR HUMAN DIGNITY” Whatever…HTTHR

Dr. Francis schaeffer – The flow of Materialism(from Part 4 of Whatever happened to human race?)

Dr. Francis Schaeffer – The Biblical flow of Truth & History (intro)

Francis Schaeffer – The Biblical Flow of History & Truth (1)

Dr. Francis Schaeffer – The Biblical Flow of Truth & History (part 2)

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Francis Schaeffer’s “How should we then live?” Video and outline of episode 10 “Final Choices” (Schaeffer Sundays)

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Francis Schaeffer’s “How should we then live?” Video and outline of episode 7 “The Age of Non-Reason” (Schaeffer Sundays)

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Francis Schaeffer’s “How should we then live?” Video and outline of episode 6 “The Scientific Age” (Schaeffer Sundays)

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By Everette Hatcher III | Posted in Francis Schaeffer | Edit | Comments (0)

Which states are the leaders in food stamp consumption? (includes editorial cartoon)

I am glad that my state of Arkansas is not the leader in food stamps!!!

The food stamp program seems to be a breeding ground of waste, fraud, and abuse. Some of the horror stories I’ve shared include:

With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show.

So exactly how bad is the food stamp program?

One way of measuring the cost of the program, both to taxpayers and to the people who get trapped in dependency, is to see what share of a state’s population is utilizing the program.

I just did a “Mirror, Mirror” post on states with the most education bureaucrats compared to teachers and got a lot of good feedback, so let’s do the same thing for food stamps.

Here’s a rather disturbing map from the Washington Post.

Food Stamp Map

A couple of things stand out. I can understand Mississippi, Louisiana, and New Mexico being among the worst states because they have relatively low average incomes. And that’s sort of an excuse for Tennessee, though it’s worth noting that economically and demographically similar states such as Georgia and Alabama don’t fall into the same dependency trap.

Why such a significant handout culture?

But the state that stands out is Oregon. Based on the state’s income, there’s no reason for more than 20 percent of resident’s to be on the dole. The state does get a “high” ranking on the Moocher Index, so there’s some evidence of an entitlement mentality. And welfare handouts also are above average in the Beaver State as well.

It’s also disappointing to see that food stamp dependency has doubled since 2008 in Florida, Rhode Island, Nevada, Utah, and Idaho. Though it’s a credit to the people of Utah that they’re still in the least-dependent category. But the trend obviously is very bad.

And it’s also depressing to look at the bar chart on the right and see that spending on the program has tripled in the past 10 years. Heck, food stamps were about 70 percent of the cost of a recent Senate “farm bill.”

P.S. A local state legislator asked an official in Richmond why Virginia got such a bad score in the ranking of teachers compared to education bureaucrats. The good news, so to speak, is that Virginia is not as bad as suggested by the official numbers. According to the response sent to this lawmaker, “VDOE has determined that the data it reported on school division personnel and assignments to NCES for 2005-2006 through 2009-2010 through the US Department of Education’s EdFacts Portal were inaccurate.”

The bad news, as you can see from this table, is that there are still more edu-crats than teachers, but the ratio apparently isn’t as bad with this updated data.

Virginia Bureaucrat-Teacher Numbers

As a Virginia taxpayer, I suppose I should be happy. But it’s hard to get overly excited when other states are taking positive steps to bring choice and competition to education, and the best thing I can say about the Old Dominion is that we’re not quite as infested with bureaucrats as we originally thought.

P.P.S. I guess I should give the left-wing Washington Post some credit for sharing the map on food stamp dependency. And, to be fair, the paper did reprint this remarkable chart showing how bad Obama’s record is on jobs compared to Reagan and Clinton. And the paper also printed this chart showing how the economy’s performance is way below average under Obama.

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Are we becoming a nation full of Julias?

I wrote about Julia the Moocher earlier this month, linking the Obama campaign’s make-believe leech with a real-world Greek woman who thought the government should take care of her.

I also shared an amusing parody of Julia by Iowahawk (the creator of the famous Pelosi car commercial).

Now Michael Ramirez has weighed in, producing a great cartoon about Obama’s dream woman.

Needless to say, Julia is the type of person who believes in riding in the wagon rather than pulling it. Heck, she wants the wagon to be a party bus, as suggested by this cartoon about the rise and fall of the welfare state.

My daughter’s given me a few gray hairs, but thankfully she didn’t turn into a slug like Julia.

P.S. Some of my favorite Ramirez cartoons can be seen here, here, hereherehereherehereherehere, and here.

Open letter to President Obama (Part 414)Let’s spend someone else’s money to solve our problems!!! That is the number one reason we have a national debt so high!!!

(Emailed to White House on 1-14-13.)

President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

Please explain to me if you ever do plan to balance the budget while you are President? I have written these things below about you and I really do think that you don’t want to cut spending in order to balance the budget. It seems you ever are daring the Congress to stop you from spending more.

President Barack Obama speaks about the debt limit in the East Room of the White House in Washington. | AP Photo

“The credit of the United States ‘is not a bargaining chip,’ Obama said on 1-14-13. However, President Obama keeps getting our country’s credit rating downgraded as he raises the debt ceiling higher and higher!!!!

Washington Could Learn a Lot from a Drug Addict

Just spend more, don’t know how to cut!!! Really!!! That is not living in the real world is it?

Making more dependent on government is not the way to go!!

Why is our government in over 16 trillion dollars in debt? There are many reasons for this but the biggest reason is people say “Let’s spend someone else’s money to solve our problems.” Liberals like Max Brantley have talked this way for years. Brantley will say that conservatives are being harsh when they don’t want the government out encouraging people to be dependent on the government. The Obama adminstration has even promoted a plan for young people to follow like Julia the Moocher.  

David Ramsey demonstrates in his Arkansas Times Blog post of 1-14-13 that very point:

Arkansas Politics / Health Care Arkansas’s share of Medicaid expansion and the national debt

Posted by on Mon, Jan 14, 2013 at 1:02 PM

Baby carrot Arkansas Medicaid expansion image

Imagine standing a baby carrot up next to the 25-story Stephens building in Little Rock. That gives you a picture of the impact on the national debt that federal spending in Arkansas on Medicaid expansion would have, while here at home expansion would give coverage to more than 200,000 of our neediest citizens, create jobs, and save money for the state.

Here’s the thing: while more than a billion dollars a year in federal spending would represent a big-time stimulus for Arkansas, it’s not even a drop in the bucket when it comes to the national debt.

Currently, the national debt is around $16.4 trillion. In fiscal year 2015, the federal government would spend somewhere in the neighborhood of $1.2 billion to fund Medicaid expansion in Arkansas if we say yes. That’s about 1/13,700th of the debt.

It’s hard to get a handle on numbers that big, so to put that in perspective, let’s get back to the baby carrot. Imagine that the height of the Stephens building (365 feet) is the $16 trillion national debt. That $1.2 billion would be the length of a ladybug. Of course, we’re not just talking about one year if we expand. Between now and 2021, the federal government projects to contribute around $10 billion. The federal debt is projected to be around $25 trillion by then, so we’re talking about 1/2,500th of the debt. Compared to the Stephens building? That’s a baby carrot.

______________

Here is how it will all end if everyone feels they should be allowed to have their “baby carrot.”

How sad it is that liberals just don’t get this reality.

Here is what the Founding Fathers had to say about welfare. David Weinberger noted:

While living in Europe in the 1760s, Franklin observed: “in different countries … 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.”

Alexander Fraser Tytler, Lord Woodhouselee (15 October 1747 – 5 January 1813) was a Scottish lawyer, writer, and professor. Tytler was also a historian, and he noted, “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”

Thomas Jefferson to Joseph Milligan

April 6, 1816

[Jefferson affirms that the main purpose of society is to enable human beings to keep the fruits of their labor. — TGW]
 

To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, “the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.” If the overgrown wealth of an individual be deemed dangerous to the State, the best corrective is the law of equal inheritance to all in equal degree; and the better, as this enforces a law of nature, while extra taxation violates it.

[From Writings of Thomas Jefferson, ed. Albert E. Bergh (Washington: Thomas Jefferson Memorial Association, 1904), 14:466.]

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Jefferson pointed out that to take from the rich and give to the poor through government is just wrong. Franklin knew the poor would have a better path upward without government welfare coming their way. Milton Friedman’s negative income tax is the best method for doing that and by taking away all welfare programs and letting them go to the churches for charity.

_____________

_________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

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Thomas Sowell – Welfare Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. The Continuing Good News About Welfare Reform By Robert Rector and Patrick Fagan, Ph.D. February 6, 2003 Six years ago, President Bill Clinton signed legislation overhauling part of the nation’s welfare system. […]

Welfare reform part 2

Uploaded by ForaTv on May 29, 2009 Complete video at: http://fora.tv/2009/05/18/James_Bartholomew_The_Welfare_State_Were_In Author James Bartholomew argues that welfare benefits actually increase government handouts by ‘ruining’ ambition. He compares welfare to a humane mousetrap. —– Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. In the controversial […]

Why did Obama stop the Welfare Reform that Clinton put in?

Thomas Sowell If the welfare reform law was successful then why change it? Wasn’t Bill Clinton the president that signed into law? Obama Guts Welfare Reform Robert Rector and Kiki Bradley July 12, 2012 at 4:10 pm Today, the Obama Department of Health and Human Services (HHS) released an official policy directive rewriting the welfare […]

“Feedback Friday” Letter to White House generated form letter response July 10,2012 on welfare, etc (part 14)

I have been writing President Obama letters and have not received a personal response yet.  (He reads 10 letters a day personally and responds to each of them.) However, I did receive a form letter in the form of an email on July 10, 2012. I don’t know which letter of mine generated this response so I have […]

Dan Mitchell destroys Max Brantley’s contention that tax rates don’t put feet in motion!!!!

Dan Mitchell destroys Max Brantley’s contention that tax rates don’t put feet in motion!!!!

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Max Brantley should be commended for admitting that tax rates do enter into the decision making process for many people when they decide to move. However, he falls short of admitting their full impact on these decisions.

Here is what the Washington Examiner  wrote about tax competition and tax migration inside the United States.

States like California…can’t afford to be hospitable to business while also funding massive public employee entitlements. …job-creating businesses flee big-government Blue States for limited-government Red States. In short order, Blue States find themselves in financial straits. …between 2000 and 2010, the big Blue States of New York, California, and Illinois chased off hundreds of thousands of residents taking billions in income with them ($45.6 billion, $29.4 billion, and $20.4 billion respectively). Each of these states have highly progressive, high-marginal rate tax codes. California, for example, has 10 income tax brackets and a top rate of 13.3 percent. New York has eight brackets and an 8.82 percent top rate. Where did all those formerly Blue State income go? To low-tax, Red State jurisdictions, including Florida (no income tax), Texas (no income tax), and Arizona (4.54 percent top rate). Those three alone raked in $67.3 billion, $17.7 billion, and $17.6 billion, respectively.

Dan Mitchell of the Cato Institute noted:

Indeed, there have been studies looking at how specific states are driving high-income taxpayers to emigrate. And that means big Laffer-Curve effects.

Which is good news because even politicians are probably capable of learning – sooner or later – that high tax rates won’t raise much revenue if the geese that lay the golden eggs decide to fly away.

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In light of these facts some of Max Brantley comments just look off a little bit:

Here’s something fun to noodle with if you have time. A Jefferson County native was fascinated withthis website, How Money Walks, and I agree there’s some interesting stuff there.

The map (flash player required) uses IRS figures to show movement of wealth, as measured by adjusted gross income, from one place to another — broken down by state and metropolitan area. There’s an ideological angle,  naturally. It’s meant to show that rich people have walked away from high-tax places like California. I’m not ready to accept the premise entirely. Taxes alone don’t explain decisions to move. Arkansas, with a high income tax rate that has flattened over the years, still manages to be a “growth” state. Louisiana, where no tax break is off the table, was a loser over the time period.

I think you can see some other forces at work in just this one slice above, on Pulaski County. A huge amount of income here moved to suburban counties over the period studied, for a giant net loss. Pulaski did gain a nice chunk of income from people leaving Jefferson County. I don’t believe it was tax rates that put those feet in motion.

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Here is the complete article from Dan Mitchell below:

Why Tax Migration and Federalism Mean Doom for Left-Wing States such as New York, California, and Illinois

Maybe this means I’m not a nice person (notwithstanding my high score for tenderness in a recent test), but I can’t help but be happy when I read bad news about fiscal policy in high-tax welfare states.

And because I’m a huge fan of tax competition, I get even happier when I find out that bloated governments are in trouble because people are escaping to places where government isn’t quite so greedy.

With that in mind, I smiled when I read what the Washington Examiner just wrote about tax competition and tax migration inside the United States.

States like California…can’t afford to be hospitable to business while also funding massive public employee entitlements. …job-creating businesses flee big-government Blue States for limited-government Red States. In short order, Blue States find themselves in financial straits. …between 2000 and 2010, the big Blue States of New York, California, and Illinois chased off hundreds of thousands of residents taking billions in income with them ($45.6 billion, $29.4 billion, and $20.4 billion respectively). Each of these states have highly progressive, high-marginal rate tax codes. California, for example, has 10 income tax brackets and a top rate of 13.3 percent. New York has eight brackets and an 8.82 percent top rate. Where did all those formerly Blue State income go? To low-tax, Red State jurisdictions, including Florida (no income tax), Texas (no income tax), and Arizona (4.54 percent top rate). Those three alone raked in $67.3 billion, $17.7 billion, and $17.6 billion, respectively.

Indeed, there have been studies looking at how specific states are driving high-income taxpayers to emigrate. And that means big Laffer-Curve effects.

Which is good news because even politicians are probably capable of learning – sooner or later – that high tax rates won’t raise much revenue if the geese that lay the golden eggs decide to fly away.

And since a picture tells a thousand words, here’s the map of taxable income migration put together by the Tax Foundation using IRS data.

Tax Foundation Income Migration Map

Before closing, I want to highlight one other passage from the Examiner column that touches on a very critical point.

Thanks to the few federalist principles that are still protected in the Constitution, Americans remain free to vote with their feet and escape economically suffocating places like California in order to move to the vastly more hospital economic climates found in Red States like Texas.

Amen. Federalism is a very valuable way of protecting people from statism. We see it when people move from New York. We see it when they escape from California. We see it from a big-picture perspective in the Tax Foundation map.

Federalism enables to producers to escape the looters and moochers.

But federalism has been weakened over the years by the expansion of federal government. If we want to bolster competition among the states – and therefore constrain the greed of the political class, we need to devolve programs from Washington.

This is why welfare reform during the Clinton years was such a good idea. And it’s why block-granting Medicaid is so desirable (above and beyond the fiscal need to implement good entitlement reform).

P.S. It’s rather appropriate that I’m writing about federalism since I’m now in Lausanne, Switzerland, for the 2013 Liberty Conference and Switzerland is probably the world’s best example of genuine federalism.

P.P.S. One small correction to the Examiner’s piece. Illinois is a high-tax state. Illinois is a big-government state. Illinois is a state heading toward fiscal collapse. There are many things wrong with the Land of Lincoln, but it hasn’t compounded those other mistakes with a “progressive” tax that discriminates against those who add more to economic output. Indeed, the fact that Illinois has a flat tax helps to explain why politicians had such a hard time pushing through a tax hike a couple of  years ago. They eventually succeeded, but the politicians faced an uphill battle because they couldn’t play the divide-and-conquer game of raising taxes on a limited segments of the population.

The Laffer Curve, Part III: Dynamic Scoring

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