Category Archives: Economist Dan Mitchell

Reagan and Clinton put Obama to shame when it comes to creating jobs

Reagan and Clinton put Obama to shame when it comes to creating jobs.

I shared a remarkable chart last year exposing Obama’s terrible record on job creation.

It showed that the economy enjoyed big employment increases during the Reagan and Clinton years, but it also revealed anemic data for the Obama years.

That’s not a surprise since Reagan was the most pro-freedom President since World War II and Clinton almost surely comes in second place.

Yes, Clinton did raise tax rates in his first year, but he put together a very strong record in subsequent years. He was particularly good about restraining the burden of government spending and overall economic freedom expanded during his reign.

He was no Reagan, to be sure, and the anti-government Congress that took power after the 1994 elections may deserve much of the credit for the good news during the Clinton years. Regardless, we had good economic performance during that period – unlike what we’ve seen during the Obama years.

Which makes this Michael Ramirez cartoon both amusing (in a tragic way) and economically accurate.

Obama v Reagan + Clinton

Since we’ve had relatively weak numbers for both jobs and growth this entire century, it would have been even better if the cartoon showed Bush and Obama both trying to raise the bar.

The real lesson is that big government is bad for jobs and growth, regardless of whether politicians have an “R” or “D” after their names.

P.S. Interestingly, now that the election is over, even the Washington Post is willing to publish charts confirming that Obama’s economic track record is miserable.

Let’s spend someone else’s money to solve our problems!!! That is the number one reason we have a national debt so high!!!

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.

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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.

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Welfare Spending Shattering All-Time Highs

  We got to act fast and get off this path of socialism. Morning Bell: Welfare Spending Shattering All-Time Highs Robert Rector and Amy Payne October 18, 2012 at 9:03 am It’s been a pretty big year for welfare—and a new report shows welfare is bigger than ever. The Obama Administration turned a giant spotlight […]

We need more brave souls that will vote against Washington welfare programs

We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back home they are going to Washington and cut government spending but once they get up there they just fall in line with  everyone else that keeps spending our money. I am glad that at least […]

Welfare programs are not the answer for the poor

Government Must Cut Spending Uploaded by HeritageFoundation on Dec 2, 2010 The government can cut roughly $343 billion from the federal budget and they can do so immediately. __________ Liberals argue that the poor need more welfare programs, but I have always argued that these programs enslave the poor to the government. Food Stamps Growth […]

Private charities are best solution and not government welfare

Milton Friedman – The Negative Income Tax Published on May 11, 2012 by LibertyPen In this 1968 interview, Milton Friedman explained the negative income tax, a proposal that at minimum would save taxpayers the 72 percent of our current welfare budget spent on administration. http://www.LibertyPen.com Source: Firing Line with William F Buckley Jr. ________________ Milton […]

The book “After the Welfare State”

Dan Mitchell Commenting on Obama’s Failure to Propose a Fiscal Plan Published on Aug 16, 2012 by danmitchellcato No description available. ___________ After the Welfare State Posted by David Boaz Cato senior fellow Tom G. Palmer, who is lecturing about freedom in Slovenia and Tbilisi this week, asked me to post this announcement of his […]

President Obama responds to Heritage Foundation critics on welfare reform waivers

Is President Obama gutting the welfare reform that Bill Clinton signed into law? Morning Bell: Obama Denies Gutting Welfare Reform Amy Payne August 8, 2012 at 9:15 am The Obama Administration came out swinging against its critics on welfare reform yesterday, with Press Secretary Jay Carney saying the charge that the Administration gutted the successful […]

Welfare reform part 3

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 […]

Is Senator Ted Cruz from Texas going to be another Rand Paul?

Ronald Reagan pictured above.
 

Ted Cruz has the right idea about cutting the size of government. He has some good ideas and he reminds me a lot of Rand Paul. He also has a great role model in Ronald Reagan who he quotes in the video clip below.

Less than one week ago, I identified three potential vehicles for some long-overdue fiscal reforms to restrain the burden of government spending.

In that post, I suggested that the “continuing resolution” was the best vehicle since lawmakers obviously would have to consider legislation to provide funding for the rest of the 2013 fiscal year.

The debt limit, by contrast, creates too many opportunities for demagoguery. Geithner and Bernanke have already demonstrated, for instance, that they’re willing to prevaricate and scare financial markets.

It’s much smarter to pick a fight on the “CR” since there not even a make-believe risk of default. Instead, the only thing that happens is that the “non-essential” parts of the federal government are shut down.

So I’m delighted to see that Ted Cruz, the new Senator from Texas, understands that the shutdown fight in 1995 led to very good results. I wrote a piece for National Review making the same point, so I’m delighted to hear someone else singing from the same sheet of music. Pay close attention at the 3:15 mark of this video.

Texas Sen. Ted Cruz on the Deficit, Gun Rights, Immigration

My only quibble is that he mentions the debt limit as the vehicle for the fight, when he should have mentioned the CR.

But I’m nit-picking. Cruz seems to get it. He puts the focus on the disease of too much government rather than fixating on the symptom of too much red ink.

He also understands that high tax rates discourage productive behavior, so he’s obviously not a fan of the President’s class-warfare approach.

Last but not least, you’ll also see he gave a very strong response on protecting the 2nd Amendment immediately following his discussion of fiscal policy.

Seems like there’s a chance he could be a second Rand Paul.

Open letter to President Obama (Part 220)

President Obama c/o 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.

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 50%? Maybe this cartoon below will be true.  

The all-time, most-viewed post on this blog is this set of cartoons showing how the welfare state begins and how it eventually becomes an unsustainable mess.

The great Chuck Asay has a cartoon that takes the next step, showing what happens when the looters and moochers who ride in the wagon get pitted against those who are pulling the wagon.

Since I’m not a Romney fan (for a bunch of reasons outlined here), I would have preferred if the cartoon didn’t imply anything about the current election and instead focused on the rhetorical question of what happens to a society when those living off the government outnumber those who get stuck picking up the tab.

It also would have been more accurate to have the two slave drivers somehow identified as “politicians” and the “IRS.”

But it’s a very clever cartoon, so it’s worth sharing even if I’m nitpicking.

You can see my favorite Asay cartoons here, here, herehere, here, here, here, here, here, here, herehereherehere, and here.

____________________

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

Milton Friedman

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Open letter to President Obama (Part 120)

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.  Dan Mitchell […]

“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 […]

Welfare reform part 1

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. The Personal Responsibility and […]

Open letter to President Obama (Part 119B)

Ep. 4 – From Cradle to Grave [3/7]. Milton Friedman’s Free to Choose (1980) 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 […]

Open letter to President Obama (Part 118B)

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. With the […]

40% of USA on government dole, need to eliminate welfare and put in Friedman’s negative income tax

Eight Reasons Why Big Government Hurts Economic Growth We got to cut these welfare programs before everyone stops working and wants to get the free stuff. The Bible says if you don’t work then you should not eat. It also says that churches should help the poor but it doesn’t say that the government should […]

 

The Atlantic’s Jeffrey Goldberg abandons his liberal friends on gun control.

Pretty shocking admissions from the liberal Jeffrey Goldberg on gun control.

An Honest Liberal Writes about Gun Control

December 16, 2012 by Dan Mitchell

I wrote earlier this month about an honest liberal who acknowledged the problems created by government dependency. Well, it happened again.

First, some background.

Like every other decent person, I was horrified and nauseated by the school shootings in Newton, Connecticut.

Part of me wishes the guy hadn’t killed himself so that he could be slowly fed into a meat grinder.

And my friends on the left will be happy to know that part of me, when I first learned about the murders, thought the world might be a better place if guns had never been invented.

Sort of like my gut reaction about cigarettes when I find out that somebody I know is dying of a smoking-related illness or how I feel about gambling when I read about a family being ruined because some jerk thought it would be a good idea to use the mortgage money at a casino.

But there’s a reason why it’s generally not a good idea to make impulsive decisions based on immediate reactions. In the case of gun control, it can lead to policies that don’t work. Or perhaps even make a bad situation worse.

I’ve certainly made these points when writing and pontificating about gun control. But I’m a libertarian, so that’s hardly a surprise. We’re people who instinctively are skeptical of giving government power over individuals.

But when someone on the left reaches the same conclusion, that’s perhaps more significant. Especially when you get the feeling that they would like ban private gun ownership in their version of a perfect world.

That’s why I heartily recommend Jeffrey Goldberg’s article in The Atlantic.

Here are some of the most profound passages in the article, beginning with a common-sense observation that there’s no way for the government to end private gun ownership.

According to a 2011 Gallup poll, 47 percent of American adults keep at least one gun at home or on their property, and many of these gun owners are absolutists opposed to any government regulation of firearms. According to the same poll, only 26 percent of Americans support a ban on handguns. …There are ways, of course, to make it at least marginally more difficult for the criminally minded, for the dangerously mentally ill, and for the suicidal to buy guns and ammunition. …But these gun-control efforts, while noble, would only have a modest impact on the rate of gun violence in America. Why? Because it’s too late. There are an estimated 280 million to 300 million guns in private hands in America—many legally owned, many not. Each year, more than 4 million new guns enter the market. …America’s level of gun ownership means that even if the Supreme Court—which ruled in 2008 that the Second Amendment gives citizens the individual right to own firearms, as gun advocates have long insisted—suddenly reversed itself and ruled that the individual ownership of handguns was illegal, there would be no practical way for a democratic country to locate and seize those guns.

Which is why prohibition was a flop. Which is why the current War on Drugs is so misguided. And so on and so on.

The author then wonders whether the best way of protecting public safety is to have more gun ownership.

Which raises a question: When even anti-gun activists believe that the debate over private gun ownership is closed; when it is too late to reduce the number of guns in private hands—and since only the naive think that legislation will prevent more than a modest number of the criminally minded, and the mentally deranged, from acquiring a gun in a country absolutely inundated with weapons—could it be that an effective way to combat guns is with more guns? Today, more than 8 million vetted and (depending on the state) trained law-abiding citizens possess state-issued “concealed carry” handgun permits, which allow them to carry a concealed handgun or other weapon in public. Anti-gun activists believe the expansion of concealed-carry permits represents a serious threat to public order. But what if, in fact, the reverse is true? Mightn’t allowing more law-abiding private citizens to carry concealed weapons—when combined with other forms of stringent gun regulation—actually reduce gun violence?

He cites examples where armed citizens stopped mass killings.

In 1997, a disturbed high-school student named Luke Woodham stabbed his mother and then shot and killed two people at Pearl High School in Pearl, Mississippi. He then began driving toward a nearby junior high to continue his shooting spree, but the assistant principal of the high school, Joel Myrick, aimed a pistol he kept in his truck at Woodham, causing him to veer off the road. Myrick then put his pistol to Woodham’s neck and disarmed him. On January 16, 2002, a disgruntled former student at the Appalachian School of Law in Grundy, Virginia, had killed three people, including the school’s dean, when two students, both off-duty law-enforcement officers, retrieved their weapons and pointed them at the shooter, who ended his killing spree and surrendered. In December 2007, a man armed with a semiautomatic rifle and two pistols entered the New Life Church in Colorado Springs and killed two teenage girls before a church member, Jeanne Assam—a former Minneapolis police officer and a volunteer church security guard—shot and wounded the gunman, who then killed himself.

The author also punctures the left’s mythology about concealed carry laws.

In 2003, John Gilchrist, the legislative counsel for the Ohio Association of Chiefs of Police, testified, “If 200,000 to 300,000 citizens begin carrying a concealed weapon, common sense tells us that accidents will become a daily event.” When I called Gilchrist recently, he told me that events since the state’s concealed-carry law took effect have proved his point. …Gilchrist’s argument would be convincing but for one thing: the firearm crime rate in Ohio remained steady after the concealed-carry law passed in 2004.

Goldberg elaborates.

Today, the number of concealed-carry permits is the highest it’s ever been, at 8 million, and the homicide rate is the lowest it’s been in four decades—less than half what it was 20 years ago. (The number of people allowed to carry concealed weapons is actually considerably higher than 8 million, because residents of Vermont, Wyoming, Arizona, Alaska, and parts of Montana do not need government permission to carry their personal firearms. These states have what Second Amendment absolutists refer to as “constitutional carry,” meaning, in essence, that the Second Amendment is their permit.) Many gun-rights advocates see a link between an increasingly armed public and a decreasing crime rate. “I think effective law enforcement has had the biggest impact on crime rates, but I think concealed carry has something to do with it. We’ve seen an explosion in the number of people licensed to carry,” Lott told me. “You can deter criminality through longer sentencing, and you deter criminality by making it riskier for people to commit crimes. And one way to make it riskier is to create the impression among the criminal population that the law-abiding citizen they want to target may have a gun.” Crime statistics in Britain, where guns are much scarcer, bear this out. Gary Kleck, a criminologist at Florida State University, wrote in his 1991 book, Point Blank: Guns and Violence in America, that only 13 percent of burglaries in America occur when the occupant is home. In Britain, so-called hot burglaries account for about 45 percent of all break-ins. Kleck and others attribute America’s low rate of occupied-home burglaries to fear among criminals that homeowners might be armed. (A survey of almost 2,000 convicted U.S. felons, conducted by the criminologists Peter Rossi and James D. Wright in the late ’80s, concluded that burglars are more afraid of armed homeowners than they are of arrest by the police.)

That last bit of info is very powerful. The bad guys are more afraid of armed homeowners than the police. Surely, as I explained here, that tells us that gun ownership lowers crime.

Here’s another no-sh*t-Sherlock observation from the article.

It is also illogical for campuses to advertise themselves as “gun-free.” Someone bent on murder is not usually dissuaded by posted anti-gun regulations. Quite the opposite—publicly describing your property as gun-free is analogous to posting a notice on your front door saying your home has no burglar alarm. As it happens, the company that owns the Century 16 Cineplex in Aurora had declared the property a gun-free zone.

I recently mocked the idea of gun-free zones with several amusing posters. It’s unbelievable that some people think that killers care about such rules.

One place that isn’t likely to see any massacres is Colorado State University.

For much of the population of a typical campus, concealed-carry permitting is not an issue. Most states that issue permits will grant them only to people who are at least 21 years old. But the crime-rate statistics at universities that do allow permit holders on campus with their weapons are instructive. An hour north of Boulder, in Fort Collins, sits Colorado State University. Concealed carry has been allowed at CSU since 2003, and according to James Alderden, the former sheriff of Larimer County, which encompasses Fort Collins, violent crime at Colorado State has dropped since then.

I also recommend this video, which makes fun of those who support gun-free zones.

Here is Goldberg’s conclusion.

But I am sympathetic to the idea of armed self-defense, because it does often work, because encouraging learned helplessness is morally corrupt, and because, however much I might wish it, the United States is not going to become Canada. Guns are with us, whether we like it or not. Maybe this is tragic, but it is also reality. So Americans who are qualified to possess firearms shouldn’t be denied the right to participate in their own defense. And it is empirically true that the great majority of America’s tens of millions of law-abiding gun owners have not created chaos in society.

Goldberg’s article, by the way, doesn’t even mention the value of private gun ownership when government fails to maintain public order, as occurred after Hurricane Sandy and during last year’s British riots.

I have a couple of final things to share, including this this video about a woman who lost her parents because she decided to obey a bad government law. And here’s a great study from Cato about individuals using guns to protect themselves.

Portugal and the Laffer Curve

Class Warfare just don’t pay it seems. Why can’t we learn from other countries’ mistakes?

Back in mid-2010, I wrote that Portugal was going to exacerbate its fiscal problems by raising taxes.

Needless to say, I was right. Not that this required any special insight. After all, no nation has ever taxed its way to prosperity.

We’re now at the end of 2012 and Portugal is still saddled with a weak economy. And the higher taxes haven’t resulted in less red ink. Indeed, according to the Economist Intelligence Unit, government debt has jumped from 93 percent of GDP in 2010 to 124 percent of GDP this year.

Why did higher taxes backfire in Portugal? For the same reasons that higher taxes have failed in Greece, Spain, Bulgaria, France, Italy, the United Kingdom, and so many other nations.

  • Higher taxes undermine incentives for productive behavior, thus reducing an economy’s potential for growth. This means less economic output, which also means a smaller tax base. This Laffer Curve effect doesn’t necessarily mean less revenue, but it certainly means that tax increases rarely raise as much money as initially projected.
  • Higher taxes usually are a substitute for the real solution of spending restraint (i.e., Mitchell’s Golden Rule). Politicians oftentimes refuse to reduce the burden of government spending because of an expectation of additional tax revenue. Heck, in many cases, higher taxes trigger an increase in the size and scope of the public sector.

So did Portugal learn any lessons from this failed experiment in Obamanomics?

Hardly. Indeed, the government plans to double down on this approach – even though it’s increasingly apparent that higher tax burdens won’t translate into much – if any – additional tax revenue. Here are some excerpts from a report in the Financial Times.

Lisbon plans to lift income tax revenue by more than 30 per cent, raising the effective average rate by more than a third from 9.8 to 13.2 per cent. Anyone receiving more than the minimum wage of €485 a month, including pensioners, will also pay an extraordinary tax of 3.5 per cent on their income. …the steep tax increases facing many families have made the outlook for 2013 – the third consecutive year of austerity, recession and rising unemployment – the grimmest yet. Total tax revenue has fallen considerably below target this year, forcing the government to implement additional austerity measures… The coalition will be relying on increased state revenue to account for about 80 per cent of the fiscal adjustment required in 2013 – a reversal of the original bailout plan, in which consolidation was to be achieved mainly through spending cuts.

Amazing. The government imposes huge tax hikes, which don’t generate any positive results. Yet even though “tax revenue has fallen considerably below target,” confirming that there are significant Laffer Curve issues, the government chooses to repeat the snake-oil fiscal therapy of higher taxes.

Anybody want to guess what’s going to happen? The answer, of course, is that this will further dampen incentives to generate income and comply with the government’s fiscal demands.

The latest increases have stretched the tax system to the limit, says Carlos Loureiro, a tax partner at Deloitte. “The current model is exhausted. We need to do something different,” he says. “Any further increase in tax rates is unlikely to result in increased revenue.” Income from value added tax, the government’s biggest source of tax revenue representing about 36 per cent of the total, has been falling since 2008, despite a sharp increase in the rate – the main rate is now 23 per cent. Both the government and the European Commission have acknowledged the risks of depending on increased tax revenue, which is more growth sensitive, to meet fiscal targets and contingency spending cuts amounting to 0.5 per cent of national output have prepared in case of another tax shortfall.

I almost want to laugh at the part of the excerpt which notes that tax revenue “has been falling…despite a sharp increase in the rate.”

Maybe it’s time for these fiscal pyromaniacs to realize that revenues might be falling because rates are higher. In other words, Portugal not only isn’t at the ideal point on the Laffer Curve (collecting the amount of revenue needed to finance legitimate activities of government), it may even be past the revenue-maximizing part of the curve.

To be fair, there are lots of factors that determine economic performance, so higher tax burdens are just one possible explanation for why the tax base is shrinking or stagnant.

The one thing we can state with certainty, though, is that Portugal’s fiscal problem is too much government spending. The failure to address this problem then leads to very unpleasant symptoms, such as lots of red ink and self-destructive class-warfare tax policy.

If all that sounds familiar, that’s because it’s also a description of what President Obama is proposing for the United States.

Ummm…shouldn’t they be targeting politicians?

P.S. I don’t want to imply that Portugal is a total basket case. True, I’m not optimistic about the country’s future, but at least some lawmakers now acknowledge that Keynesian spending was a big mistake. And there are even signs that Portuguese officials are beginning to realize that lower tax rates should be part of the solution. But good policy may be impossible since so many people now have a moocher mentality.

P.P.S. At the risk of bearing bad news to close the year, research from both the Bank for International Settlements and the Organization for Economic Cooperation and Development shows the United States actually faces a bigger long-run fiscal challenge than Portugal.

The Laffer Curve – Explained

Uploaded by on Nov 14, 2011

This video explains the relationship between tax rates, taxable income, and tax revenue. The key lesson is that the Laffer Curve is not an all-or-nothing proposition, where we have to choose between the exaggerated claim that “all tax cuts pay for themselves” and the equally silly assumption that tax policy doesn’t effect the economy and there is never any revenue feedback. From http://www.freedomandprosperity.org 202-285-0244

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Francis Schaeffer and C. Everette Koop on the Hippocratic oath (March for Life January 20, 2013)

Dr. C. Everett Koop was appointed to the Reagan administration but was held up in the Senate in his confirmation hearings by Ted Kennedy because of his work in pro-life causes.

I was thinking about the March for Life that is coming up on Jan 20, 2013  and that is why I posted this today

Francis Schaeffer: “Whatever Happened to the Human Race?” (Episode 2) SLAUGHTER OF THE INNOCENTS

Published on Oct 6, 2012 by

In this same film series is a great episode on killing old people (youth euthanasia). Here it is:

One of my favorite economists is Dan Mitchell and recently he noted, “Wow. I guess doctors in the UK don’t have to take the Hippocratic Oath! A society like this is not going to last very long at all. The rot is pervasive and terminal.”

This comment by Mitchell was on his blog where the subject of infanticide came up and Mitchell was surprised that many of his readers jumped on the infanticide bandwagon. There are several reasons for this but the main reason is that many of Mitchell’s readers hold a mechanistic view of man. Man is the product not of creation by a personal God like our founding fathers believed but a product of the impersonal chance driven evolutionary process. I have discussed this with many people in the past and I just blogged about it today on the Arkansas Times Blog.

Schaeffer and Koop in their film series took the first three episodes to look where a mechanistic view of life leads. 1. Abortion, 2. Infanticide and 3. Youth Euthanasia. What is acceptable killing after all?  Was Hitler wrong or not?  Was Jack Kevorkian right or not? (Kevorkian could have taken on that problem of lack of funding for social security and solved it fast!!!)

Here is an article below that discusses what Francis Schaefffer and Dr. C. Everette Koop had to say about the Hippocratic oath and how it is being used in modern times. (Schaeffer and Koop really did look at what was happening in the 1970’s and correctly predicted what measures medical science would take the future concerning these crucial issues.) Actually  Francis Schaeffer actually predicted that men like Jack Kevorkian would come long ago.  Take a look at this article below.

Right to Life vs. Sanctity of Life

Perhaps the most basic right that a human being possesses under the law of an organized society is the right to be born and to continue living. Much attention in recent times has been given to the right of a fetus (Latin for “little one”) to exist until the time of birth. One writer who should be commended for addressing some of the philosophical and theological issues pertaining to people with disabilities is Dr. Francis A. Schaeffer. However, his prime foci in the book he co-authored with Dr. C. Everett Koop, Whatever Happened to the Human Race?, were abortion, infanticide, and euthanasia and not issues specifically related to disability.

Within the scdpe of the abortion issue lies the matter of terminating a pregnancy if some irregularity is discovered in the fetus, thereby warding off the possibility of “burdening the parents and society” with a child with disabilities. The authors remind us that. . .

the graduates of American medical schools have traditionally taken the Hippocratic oath, which goes back more than two thousand years at the time of their commencement. The Declaration of Geneva (adopted in September 1948 by the General Assembly of the World Medical Organization and modeled closely on the Hippocratic oath) became used as the graduation oath by more and more medical schools. It includes, “I will maintain the utmost respect for human life; from the time of conception.” This concept for the preservation of human life has been the basis of the medical profession and society in general. It is significant that, when the University of Pittsburgh changed from the Hippocratic oath to the Declaration of Geneva in 1971, the students deleted “from the time of conception” from the clause beginning “I will maintain the utmost respect for human life.” The University of Toronto School of Medicine has also removed the phrase “from the time of conception” from the form of oath it now uses.4

Therefore it is not difficult for some to take the step from dismissing a fetus as being a viable life to destroying a fetus that has some irregularity. This may be done in the name of humaneness, believing that by destroying a,”nonlife” you have preserved the quality of other “valid” lives – in particular the quality of life of the parents and siblings. Furthermore, the argument may continue, “ought not the population at large be spared the financial burden of providing care for those potentially disabled children?”

Thus the question is posed: Does a child with disabilities have a right to life? Furthermore, does a fetus, for which medical experts have declared the possibility of being disabled, have any right to be protected from being killed? Necessarily, the law must address any issue pertaining to “rights;” but theologically if we debate the questions at hand on the grounds of our intrinsic or civil rights, we are approaching this subject from a wrong perspective. If we fight this battle on the grounds of rights, then what about the right of the mother to control what happens in her own body or the right of the family not to be unduly restricted by the (perhaps) relentless burden of daily care of a child with disabilities? Then what about the right of the population not to be encumbered with a heavier tax burden, higher insurance premiums, and the extra expense of architectural adjustments in its public buildings in order to accommodate the special needs of certain groups? When “your rights” infringe upon “my rights,” then the battle is truly engaged!

Theologically, the so-called “right to life” terminology is a misnomer. Who, pray tell, has a right to life? I don’t. You don’t. And neither does a person with disabilities. The Scriptures, rather, teach the sanctity of life in that all life is God-given. Life is a gift from God. Job declared, . . . the breath of the Almighty gives me life. (Job 33:4). The writer of Ecclesiastes wrote that all the days of life that a man lives. . . God has given him. . . (Ecclesiastes 5:18, 8:15). Deuteronomy 30:20 reads, For the Lord is your life, and he will give you many years in the land. . . Acts 17:28 says, For in him we live and move and have our being. Colossians 1:17 teaches that all things are held together by Him. James 4:14,15 gives us to understand that the continuance or end of our lives is subject to God’s will.

All life, then, being God-given, God-sustained, and ultimately God-terminated, belongs strictly to the province of God’s authority. If God has chosen to give life, to a person with disabilities or to a fetus who has possible disabilities, then who BUT GOD shall dare to take unto herself or himself the authority to end that life? Life, human life-all human life-belongs to God. In a sense He loans it as a trust, a sacred trust. He alone has the authority to give, withhold, sustain, and withdraw life. And so we address this issue of life on the grounds of its sacredness. not on rights, at least as far as theology is concerned.

Related posts:

Francis Schaeffer affected pro-life movement (Part 3) “Schaeffer Sunday”

On the Arkansas Times blog in the comment section the person using username “Hackett” asserted: Life begins when the fetus is viable outside the womb, prior to that it is parasitical and lives at the discretion of the host. I responded with this post: It seems to me the real argument lies in the personhood […]

Open letter to Republican Presidential Candidate Mitt Romney on our pro-life views (Part 3)

To Mitt Romney, Box 96994, Washington, DC 20077-7556  From Everette Hatcher of http://www.thedailyhatch.org 13900 Cottontail Lane, Alexander, AR 72002 Did we forgive George Bush in 1988 for being pro-choice originally in 1980? We sure did. In fact, my former pastor, Adrian Rogers, had a chance to visit with Bush several times. He told him that the […]

Does human life begin at birth or conception?

On the Arkansas Times blog in the comment section the person using username “Hackett” asserted: Life begins when the fetus is viable outside the womb, prior to that it is parasitical and lives at the discretion of the host. I responded with this post today: It seems to me the real argument lies in the […]

A man of pro-life convictions: Bernard Nathanson (part 2)

“Jane Roe” or Roe v Wade is now a prolife Christian. She’s recently has done a commercial about it. _______________________________ I have often wondered why we got to this point in our country’s life and we allow abortion. The answer is found in the words of Schaffer. Philosopher and Theologian, Francis A. Schaeffer has argued, […]

A man of pro-life convictions: Bernard Nathanson (part 1)

This is such a great video series “The Silent Scream.” I have never seen it until now and I wish I had seen it 30 years ago.  Take a look at the video clip below. I wanted to pass along a portion of the excellent article “Bernard Nathanson: A Life Transformed by the Truth about […]

Pro-abortion Ark Times article refuted here (Part 1)jh52

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Abortionist Bernard Nathanson turned pro-life activist (part 7) Have you wondered why we have abortion in the USA?

“Jane Roe” or Roe v Wade is now a prolife Christian. She’s recently has done a commercial about it.   _______________________________ I have often wondered why we got to this point in our country’s life and we allow abortion. The answer is found in the words of Schaffer. Philosopher and Theologian, Francis A. Schaeffer has […]

Francis Schaeffer’s prayer for us in USA

 Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 1) ABORTION OF THE HUMAN RACE Published on Oct 6, 2012 by AdamMetropolis The 45 minute video above is from the film series created from Francis Schaeffer’s book “Whatever Happened to the Human Race?” with Dr. C. Everett Koop. This book  really helped develop my political views […]

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

E P I S O D E 1 0   Dr. Francis Schaeffer – Episode X – Final Choices 27 min FINAL CHOICES I. Authoritarianism the Only Humanistic Social Option One man or an elite giving authoritative arbitrary absolutes. A. Society is sole absolute in absence of other absolutes. B. But society has to be […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 9 “The Age of Personal Peace and Affluence” (Schaeffer Sundays)

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Francis Schaeffer’s “How should we then live?” Video and outline of episode 8 “The Age of Fragmentation” (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)

E P I S O D E 7 Dr. Francis Schaeffer – Episode VII – The Age of Non Reason I am thrilled to get this film series with you. I saw it first in 1979 and it had such a big impact on me. Today’s episode is where we see modern humanist man act […]

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

E P I S O D E 6 How Should We Then Live 6#1 Uploaded by NoMirrorHDDHrorriMoN on Oct 3, 2011 How Should We Then Live? Episode 6 of 12 ________ I am sharing with you a film series that I saw in 1979. In this film Francis Schaeffer asserted that was a shift in […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 5 “The Revolutionary Age” (Schaeffer Sundays)

E P I S O D E 5 How Should We Then Live? Episode 5: The Revolutionary Age I was impacted by this film series by Francis Schaeffer back in the 1970′s and I wanted to share it with you. Francis Schaeffer noted, “Reformation Did Not Bring Perfection. But gradually on basis of biblical teaching there […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 4 “The Reformation” (Schaeffer Sundays)

Dr. Francis Schaeffer – Episode IV – The Reformation 27 min I was impacted by this film series by Francis Schaeffer back in the 1970′s and I wanted to share it with you. Schaeffer makes three key points concerning the Reformation: “1. Erasmian Christian humanism rejected by Farel. 2. Bible gives needed answers not only as to […]

“Schaeffer Sundays” Francis Schaeffer’s “How should we then live?” Video and outline of episode 3 “The Renaissance”

Francis Schaeffer’s “How should we then live?” Video and outline of episode 3 “The Renaissance” Francis Schaeffer: “How Should We Then Live?” (Episode 3) THE RENAISSANCE I was impacted by this film series by Francis Schaeffer back in the 1970′s and I wanted to share it with you. Schaeffer really shows why we have so […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 2 “The Middle Ages” (Schaeffer Sundays)

  Francis Schaeffer: “How Should We Then Live?” (Episode 2) THE MIDDLE AGES I was impacted by this film series by Francis Schaeffer back in the 1970′s and I wanted to share it with you. Schaeffer points out that during this time period unfortunately we have the “Church’s deviation from early church’s teaching in regard […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 1 “The Roman Age” (Schaeffer Sundays)

Francis Schaeffer: “How Should We Then Live?” (Episode 1) THE ROMAN AGE   Today I am starting a series that really had a big impact on my life back in the 1970′s when I first saw it. There are ten parts and today is the first. Francis Schaeffer takes a look at Rome and why […]

Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 5) TRUTH AND HISTORY

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Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 4) THE BASIS FOR HUMAN DIGNITY

The opening song at the beginning of this episode is very insightful. Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 4) THE BASIS FOR HUMAN DIGNITY Published on Oct 7, 2012 by AdamMetropolis This crucial series is narrated by the late Dr. Francis Schaeffer and former Surgeon General Dr. C. Everett Koop. Today, choices […]

Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 3) DEATH BY SOMEONE’S CHOICE

Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 3) DEATH BY SOMEONE’S CHOICE Published on Oct 6, 2012 by AdamMetropolis This crucial series is narrated by the late Dr. Francis Schaeffer and former Surgeon General Dr. C. Everett Koop. Today, choices are being made that undermine human rights at their most basic level. Practices […]

Francis Schaeffer: “Whatever Happened to the Human Race?” (Episode 2) SLAUGHTER OF THE INNOCENTS

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Francis Schaeffer: “Whatever Happened to the Human Race” (Episode 1) ABORTION OF THE HUMAN RACE

It is not possible to know where the pro-life evangelicals are coming from unless you look at the work of the person who inspired them the most. That person was Francis Schaeffer.  I do care about economic issues but the pro-life issue is the most important to me. Several years ago Adrian Rogers (past president of […]

The following essay explores the role that Francis Schaeffer played in the rise of the pro-life movement. It examines the place of How Should We Then Live?, Whatever Happened to the Human Race?, and A Christian Manifesto in that process.

This essay below is worth the read. Schaeffer, Francis – “Francis Schaeffer and the Pro-Life Movement” [How Should We Then Live?, Whatever Happened to the Human Race?, A Christian Manifesto] Editor note: <p> </p> [The following essay explores the role that Francis Schaeffer played in the rise of the pro-life movement.  It examines the place of […]

Who was Francis Schaeffer? by Udo Middelmann

Great article on Schaeffer. Who was Dr. Francis A. Schaeffer? By Francis Schaeffer The unique contribution of Dr. Francis Schaeffer on a whole generation was the ability to communicate the truth of historic Biblical Christianity in a way that combined intellectual integrity with practical, loving care. This grew out of his extensive understanding of the Bible […]

At least the Tea Party stood up for the founding fathers’ idea of limited government

At least the Tea Party stood up for the founding fathers’ idea of limited government. They did not vote for the “fiscal cliff deal” which only cut 15 billion when it raised taxes by 600 billion. They wanted spending cut and I mean real cuts in spending too.

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.

Chuck Asay has produced some great political cartoons, including personal favorites such as the Geithner-Obama tractor, the big-bad-wolf economic climate, and (his all-time best, in my humble opinion) the nothing-left-to-steal warning for statists.

Here’s one that’s quite appropriate for today since the politicians are busy negotiating over how to raise taxes while failing to address the real problem of a federal government that is too big and spending too much.

What makes this cartoon so perceptive is that it shows how many – if not most – Republicans are just as willing and happy as Democrats to exacerbate our fiscal problems.

Asay Kick the Can Cartoon

The only bad news is that the cartoon implies the Tea Party has the ability to stop Obama and the other big spenders from kicking the can down the road.

If only. We’re going to get a tax increase in January and there’s nothing the Tea Party can do to stop that from happening. They can’t force Obama, the Senate, or even the GOP leadership in the House to implement pro-growth spending reforms such as a Swiss-style spending cap.

But at least there are some lawmakers who are fighting to do what’s right. I don’t know if they’ll ever succeed, but at least some folks in Washington understand that something needs to happen to restrain the burden of government spending.

Gun control does not make since unless you suspend your reasoning ability

Despite what Max Brantley of the Arkansas Times Blog (1-9-13) would have you believe gun control does not make since unless you suspend your reasoning ability. There are so many examples that show how silly gun control is.

Last month, I shared some very amusing images and signs mocking the concept of gun-free zones.

A couple of days later, I followed up with two amusing posters about the pro-gun control mindset.

Well, there seems to be a never-ending supply of good material supporting the Second Amendment. Let’s start with this set of dueling signs. You may notice a common theme between the thinking of the guy on the right and the thinking of the guy who owns this vehicle.

What’s the opposite of a gun-free zone? Well, it’s a place that thugs and crazies avoid when deciding to go on a killing spree.

Last but not least, ask yourself what you would prefer if one of your kids was trapped in a building with a nutcase. I’ll take the option on the top of this image.

Very similar to the message in these two signs and the upper image in this post.

To wrap things up, here’s my favorite poster on gun control, and here’s my favorite video on the Second Amendment.

P.S. I was disappointed but not surprised by Obama’s rabid response and Romney’s milquetoast response to the question about “assault weapons” in the last debate. John Lott is the go-to guy on that issue, as you can from this analysis.

P.P.S. People also like this powerpoint presentation on the 2nd Amendment. Feel free to share all this material.

__________________

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Gun Control cartoon hits the internet

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Subjects mentioned in letters from President Obama’s White House

“Feedback Friday” Letter to White House generated form letter response June 22, 2012(part B) on Healthcare (part 11) This letter from President Obama was a response to a letter I wrote that was both emailed and mailed to President Obama and the emailed version included this video below: Below are the subjects that President Obama or his […]

Dan Mitchell takes on gun control nuts!!!

The Colorado tragedy has got a lot of people talking about gun control again. Here are some facts for you from Dan Mitchell’s blog. Assault Weapons: Facts vs. Fiction July 28, 2012 by Dan Mitchell It’s not much of an exaggeration to say that John Lott has changed the national debate on gun control. His rigorous […]

Could Dark Knight mass murder in Colorado been avoided by more gun control?

John Stossel report “Myth: Gun Control Reduces Crime Sadly another mass murder happened last night. This time it was at a midnight showing of “The Dark Knight Rises” in Colorado. Over 50 people were shot by a gunman and many died as the Arkansas Times reported. This will start the gun control debate again and […]

Open letter to President Obama (Part 101)

John Stossel report “Myth: Gun Control Reduces Crime 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 […]

Fast and Furious: The real story

Published on Apr 19, 2012 by NRAVideos Cam Edwards talks to Katie Pavlich from Townhall about her new book, Fast and Furious: Barack Obama’s Bloodiest Scandal and the Shameless Cover-Up – NRA News – April 18, 2012. _______________ Scribecast: Katie Pavlich on the Scandal of Operation Fast and Furious Rob Bluey April 28, 2012 at […]

“Feedback Friday” Letter to White House generated form letter response May 23, 2012 on gun control (part 7)

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 May 23, 2012. I don’t know which letter of mine generated this response so I have […]

Open letter to President Obama (Part 84.3)

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. Great post […]

Gun control in Europe

I really like this post by Dan Mitchell: Will You Be Able to Protect Your Family if Politicians Destabilize Society? December 5, 2011 by Dan Mitchell About a week ago, I wrote that people in western nations need the freedom to own guns just in case there are riots, chaos, and social disarray when welfare states […]

The experts on gun control speak out

Great post from Dan Mitchell: The Best Poster I’ve Ever Seen on Gun Control, Without Rival April 19, 2010 by Dan Mitchell This image really captures the essence of the issue. Share this with your statist friends and maybe they’ll begin to understand.  

Growing the economy is the answer, not raising taxes

I just don’t think it is productive to raise taxes on a sluggish economy when we should be growing the economy which makes for a larger pie and everyone can get a bigger slice.

________

Will Higher Tax Rates Balance the Budget?

Published on Apr 11, 2012

As the U.S. debt and deficit grows, some politicians and economist have called for higher tax rates in order to balance the budget. The question becomes: when the government raises taxes, does it actually collect a larger portion of the US economy?

Professor Antony Davies examines 50 years of economic data and finds that regardless of tax rates, the percentage of GDP that the government collects has remained relatively constant. In other words, no matter how high government sets tax rates, the government gets about the same portion. According to Davies, if we’re concerned about balancing the budget, we should worry less about raising tax revenue and more about growing the economy. The recipe for growth? Lower tax rates and a simplified tax code.

Here’s the class-warfare present that the clowns in Washington are giving us for the New Year.

Happy New Year

According to some estimates, this “balanced approach” in this plan has $54 of tax increases for every $1 of spending cuts. That’s even worse than what’s been happening in Europe.

Keep in mind, though, that this assumes the dishonest Washington definition of a “cut,” which merely means spending doesn’t climb as fast as some artificial baseline that assumes an ever-rising burden of government spending.

But look at the bright side. Things have to get better from this point. Right? Maybe? Oh, wait, we still have the debt limit fight.