Ted Nugent’s an icon out there; what he can do with the Gibson most only dream of. His 6000th concert was in 2008; 30MM records and he’s still going strong. There’s many who claim these music types are a hopeless lot, that they’ll never learn, a burden of the rest of us. Certainly PP&M lend credence to that theory, but then again Baez gained an anchor and in spite of the company she kept. Nugent never had that problem - he had a grip from the get go.
Ted writes in today’s Washington Times. He demonstrates a keen grasp of the US financial situation, showing evidence of scholarship that perhaps only those of us who have taken the effort really appreciate. He reminds us at the beginning that when you’re in a hole, stop digging. Nugent notes that we are in hock to the tune of $14 trl (maybe $100trl if Medicare, Medicaid and S Sec are included). “This gigantic level of borrowing and spending is unsustainable by any measure, by any means,” Nugent explains. “The only real reason Fedzilla would do such a thing would be that those currently in charge want to destroy America and turn us into a Third World nation.”
Well, not sure we can agree that the average Democrat actually understands that by their vote they are destroying America; most are blissfully ignorant of the policy implications. The hard core - Obama and his type, yes, they are out to destroy a way of life, certainly that is so.
Nugent continues, “America is in a deep financial hole. Obama’s solution to this hole: Keep borrowing and spending. Dig, baby, dig. We shouldn't expect anything different from a president and administration who don't have a clue about how private industry works or how Fedzilla's policies stifle growth. At least from my research, I still can't find anyone on the president's closest team who has actually started a successful business. I can however find Che Guevara and Mao Zedong fans. Phenomenal.” Indeed.
Nugent may not be the world’s best writer but he does have the bull by the horns - accurate and direct. For support he quotes Erskine Bowles who heads BO’s debt commission, who told the National Gov’s Assoc the other day that, “This debt is like a cancer. It is truly going to destroy the country from within.”
Nugent’s solution: “The very first thing we need to do is elect a fiscally conservative House and Senate this fall to serve as a dam against the Fedzilla tsunami of spending. Then we need to hold them accountable. We need tax relief across the board, from businesses to individuals. Nothing will get the economy moving faster than keeping money in the hands of American businesses and people who earned it. America should have the most pro-business tax structure on the planet. We do not. My home state of Texas has the best economy in America. Interestingly, Texas has no corporate income tax, capital-gains tax or personal income tax. Don't tell me that reducing taxes across the board will not put people back to work.”
Well put Ted.
Robert Craven
Saturday, July 24, 2010
Friday, July 23, 2010
Hope For Change
There is hope for the US real sector given change that is expected this November. Certainly employers will be heartened if the election ushers out the majority. Democrats are bad for business. Obama is death for business.
Most of us know at this juncture what it is that ails this “recovery” - employers’ reluctance to hire given the obstacles, both real and perceived to be placed on their books by the Obama agenda. This is straightforward. We have it from them directly. The great mystery is why business owners, particularly small business owners who are registered Democrats are not in revolt. Everything about their party, especially about its leader blocks any meaningful chance for a rapid recovery, for renewed vigor. The only answer must be that these are willing to pay the price of Obama’s social-democratic ambitions out of their own pockets, like our nursery pals.
The rest of us must wait for November. But even then, even when the little darlings are herded out the door there is a wild card. As some observers remind us, those Democrats defeated in Nov aren’t going anywhere for a bit; they’re lame ducks. They could vote for anything; they have nothing to loose. This is a very real threat.
From Krauthammer, “As John Fund reports in the WSJ, Sens Jay Rockefeller, Kent Conrad and Tom Harkin are already looking forward to what they might get passed in a lame-duck session. Among the major items being considered are card check, budget-balancing through major tax hikes, and climate-change legislation involving heavy carbon taxes and regulation,” every one anti growth, anti recovery we might add. “Perhaps shame will constrain the Democrats,” notes Krauthammer, but warns that, “this is not to be counted to on. It didn’t stop them from pushing through health-care reform the public didn’t want by means of ‘reconciliation’ maneuvers and without a single Republican vote in either chamber — something unprecedented in American history for a reform of such scope and magnitude.”
There’s hope for change alright folks. The masses have recognized their error and part of it will be rectified this November. It’s then up to defeated Democrats to behave honorably. Can we count on it? We’ve got a call in to Charley Rangel.
Robert Craven
Most of us know at this juncture what it is that ails this “recovery” - employers’ reluctance to hire given the obstacles, both real and perceived to be placed on their books by the Obama agenda. This is straightforward. We have it from them directly. The great mystery is why business owners, particularly small business owners who are registered Democrats are not in revolt. Everything about their party, especially about its leader blocks any meaningful chance for a rapid recovery, for renewed vigor. The only answer must be that these are willing to pay the price of Obama’s social-democratic ambitions out of their own pockets, like our nursery pals.
The rest of us must wait for November. But even then, even when the little darlings are herded out the door there is a wild card. As some observers remind us, those Democrats defeated in Nov aren’t going anywhere for a bit; they’re lame ducks. They could vote for anything; they have nothing to loose. This is a very real threat.
From Krauthammer, “As John Fund reports in the WSJ, Sens Jay Rockefeller, Kent Conrad and Tom Harkin are already looking forward to what they might get passed in a lame-duck session. Among the major items being considered are card check, budget-balancing through major tax hikes, and climate-change legislation involving heavy carbon taxes and regulation,” every one anti growth, anti recovery we might add. “Perhaps shame will constrain the Democrats,” notes Krauthammer, but warns that, “this is not to be counted to on. It didn’t stop them from pushing through health-care reform the public didn’t want by means of ‘reconciliation’ maneuvers and without a single Republican vote in either chamber — something unprecedented in American history for a reform of such scope and magnitude.”
There’s hope for change alright folks. The masses have recognized their error and part of it will be rectified this November. It’s then up to defeated Democrats to behave honorably. Can we count on it? We’ve got a call in to Charley Rangel.
Robert Craven
Wednesday, July 21, 2010
Economic Literacy - Stick With It
Now that we’re all enthused about economic literacy, let’s stick with it. It’s fun folks. Come on! Mark the next FOMC meeting on you calender (8/10). Get excited! Tell the kids! Sit down at dinner tonight and say, “OK, that’s it. We’re sick of being treated like dummies when it comes to things economic, and, we’re not going to take it anymore!” Good, that’s a start.
OK. Now. Have we been hoodwinked by the pres? Would he lie to us? Let’s see.
Mike Boskin is a prof of economics at Stanford. Bob Barro is a prof of economics at Harvard. Lee Ohanian is a prof of economics at UCLA.
Boskin starts out for us in an easy-to-understand bit in today’s WSJ, entitled Obama’s Economic Fish Stories. “..Obama says ‘every economist who’s looked at it says that the Recovery Act has done its job.’” Boskin’s response - “That’s nonsense.”
Boskin continues, and again, with up front, simple stuff for all of us: “The stimulus bill is mostly a tragic waste of money ..... the permanent government expansion and higher tax rate agenda is a classic example of what not to do during bad economic times. Worse yet, all the subsidies, bailouts, regulations and mandates are forcing noncommercial decisions on the economy, which now awaits literally thousands of new diktats as a result of things like ObamaCare and the financial reform bill. The uncertainty is impeding investment and hiring." Right.
Bob Barro, after exhaustive research,offers this: “The projected effect on other parts of GDP (consumer expenditure, private investment, net exports) is minus 180, minus 120, +60, minus 330, minus 330, which adds up to minus 900. Thus, viewed over five years, the fiscal stimulus package is a way to get an extra $600 billion of public spending at the cost of $900 billion in private expenditure. This is a bad deal.” Right again.
Finally, Ohanian’s research indicates that gov’t stimulus cannot be stimulus at all, by any definition. We have reflected Lee’s view earlier - where in the world does the money come from? From the grasp of private enterprise. Barro’s research dovetails with this.
Aren’t you just a tad pissed that BO threw all of your $ down the john? Just a tad? And doesn’t all of this make a lie out of every word BO uttered about the stimulus heist?
And now Obama threatens to allow the Bush tax cuts to expire. His own eco adviser Christina Romner notes in the most recent issue of the American Economic Review what any fool knows, that "tax increases are highly contractionary . . . tax cuts have very large and persistent positive output effects." Their estimates imply the tax increases would depress GDP by roughly half the growth rate in this so-far-anemic recovery.”
Better listen up Obama.
Robert Craven
OK. Now. Have we been hoodwinked by the pres? Would he lie to us? Let’s see.
Mike Boskin is a prof of economics at Stanford. Bob Barro is a prof of economics at Harvard. Lee Ohanian is a prof of economics at UCLA.
Boskin starts out for us in an easy-to-understand bit in today’s WSJ, entitled Obama’s Economic Fish Stories. “..Obama says ‘every economist who’s looked at it says that the Recovery Act has done its job.’” Boskin’s response - “That’s nonsense.”
Boskin continues, and again, with up front, simple stuff for all of us: “The stimulus bill is mostly a tragic waste of money ..... the permanent government expansion and higher tax rate agenda is a classic example of what not to do during bad economic times. Worse yet, all the subsidies, bailouts, regulations and mandates are forcing noncommercial decisions on the economy, which now awaits literally thousands of new diktats as a result of things like ObamaCare and the financial reform bill. The uncertainty is impeding investment and hiring." Right.
Bob Barro, after exhaustive research,offers this: “The projected effect on other parts of GDP (consumer expenditure, private investment, net exports) is minus 180, minus 120, +60, minus 330, minus 330, which adds up to minus 900. Thus, viewed over five years, the fiscal stimulus package is a way to get an extra $600 billion of public spending at the cost of $900 billion in private expenditure. This is a bad deal.” Right again.
Finally, Ohanian’s research indicates that gov’t stimulus cannot be stimulus at all, by any definition. We have reflected Lee’s view earlier - where in the world does the money come from? From the grasp of private enterprise. Barro’s research dovetails with this.
Aren’t you just a tad pissed that BO threw all of your $ down the john? Just a tad? And doesn’t all of this make a lie out of every word BO uttered about the stimulus heist?
And now Obama threatens to allow the Bush tax cuts to expire. His own eco adviser Christina Romner notes in the most recent issue of the American Economic Review what any fool knows, that "tax increases are highly contractionary . . . tax cuts have very large and persistent positive output effects." Their estimates imply the tax increases would depress GDP by roughly half the growth rate in this so-far-anemic recovery.”
Better listen up Obama.
Robert Craven
Friday, July 16, 2010
Homework
If economic literacy were a requirement for entering the voting booth the Democratic party would be doomed. If the economic implications of BO’s agenda for example were to register with most who voted for this guy, then after kicking themselves in the rear, they’d vow - never again.
Unfortunately, the masses are slow to pick up on this stuff. So what literally happens is that those of us with a handle take a time out so that those without, can catch up. It’s frustrating.
The left and most of their kind ignore history, particularly economic history; no such thing actually exists in their exquisite, tiny little minds. It’s a pleasant case of amnesia.
Operatives of the left know this; BO knows this; all play to it. They knew most registered Democrats could not get their arms around the culpability of those who protected the twins, the original act of sin which precipitated the crisis of Q4 08. And they know that many still cannot get their arms around today’s ground zero - that key to understanding the “slow” in slow recovery, the #1 voter concern. Dodd, Obama, Frank, Boxer and others have their fingerprints all over the first; BO alone is responsible for the second.
You can demonstrate the key to the soft economy in a direct way, quoting business leaders for example. It doesn’t register with our lefty friends. That, or the left just cannot look in the mirror and say the words - “I am responsible”. But indeed, business leaders agree that in the Obama world of high business taxes, income taxes, payroll taxes, capital gains taxes, and workers compensation taxes, the key to success is to avoid employees. The only way to survive as a business owner today is by keeping the payroll very low and by hiring only independent contractors or part-time employees provided by temp agencies. This takes the “trickle” out of trickle down.
But wait! For our progressive pals maybe this is the price they are willing to pay. Obama’s statist agenda, repulsive to potential employers may be music to them. To each his own. Sure their business is in the tank, but being principled, stand up guys and not hypocrites, they are very happy to be able to pay for BO’s enlightened agenda, out of their own pockets. Something they are doing at this very moment.
For most of the rest of us, certainly for independents and even many moderate Democrats there is the understanding that with pocket book issues, BO remains the extremist he always was - a far-left ideologue bent on gov’t control of as many productive resources as he can get his hands on. Only the willfully blind didn’t “see” that up front.
Want a brighter economic picture? Bone up on a little economics before you vote next time.
Robert Craven
Unfortunately, the masses are slow to pick up on this stuff. So what literally happens is that those of us with a handle take a time out so that those without, can catch up. It’s frustrating.
The left and most of their kind ignore history, particularly economic history; no such thing actually exists in their exquisite, tiny little minds. It’s a pleasant case of amnesia.
Operatives of the left know this; BO knows this; all play to it. They knew most registered Democrats could not get their arms around the culpability of those who protected the twins, the original act of sin which precipitated the crisis of Q4 08. And they know that many still cannot get their arms around today’s ground zero - that key to understanding the “slow” in slow recovery, the #1 voter concern. Dodd, Obama, Frank, Boxer and others have their fingerprints all over the first; BO alone is responsible for the second.
You can demonstrate the key to the soft economy in a direct way, quoting business leaders for example. It doesn’t register with our lefty friends. That, or the left just cannot look in the mirror and say the words - “I am responsible”. But indeed, business leaders agree that in the Obama world of high business taxes, income taxes, payroll taxes, capital gains taxes, and workers compensation taxes, the key to success is to avoid employees. The only way to survive as a business owner today is by keeping the payroll very low and by hiring only independent contractors or part-time employees provided by temp agencies. This takes the “trickle” out of trickle down.
But wait! For our progressive pals maybe this is the price they are willing to pay. Obama’s statist agenda, repulsive to potential employers may be music to them. To each his own. Sure their business is in the tank, but being principled, stand up guys and not hypocrites, they are very happy to be able to pay for BO’s enlightened agenda, out of their own pockets. Something they are doing at this very moment.
For most of the rest of us, certainly for independents and even many moderate Democrats there is the understanding that with pocket book issues, BO remains the extremist he always was - a far-left ideologue bent on gov’t control of as many productive resources as he can get his hands on. Only the willfully blind didn’t “see” that up front.
Want a brighter economic picture? Bone up on a little economics before you vote next time.
Robert Craven
Tuesday, July 13, 2010
Ground Zero
Again, let us visit that which plagues this nation - a crawling economy. Is there a ground zero, a heart to the darkness? Of course there is, and it's easy for all of us to understand. The tough part is accepting responsibility, the baggage of the left.
A gracious partner in debate is our nurseryman friend. His business could not be more discretionary. Thus, it is suffering. When we delicately pointed to the cause he instead blamed it on, naturally, Bush and the banks. But this is an impossibility; the two are not related.
We have featured quote after quote from business leaders answering the question - Why are you not hiring? Their answers share a thread AND IT IS NOT LACK OF DEMAND; it is the perceived burdens to be placed on them by BO. Easy. Yet our friend can’t admit it, or at least won’t, even if he heard it, and he did, from the horses mouth. He cannot bring himself to admit that he voted for an extremist.
Patience. OK, let’s try again.
We have another friend who with his family owns a large employment company in Marin. His told us last week that his business is booming - not for full time, but for temps. Know why? Right. Temp workers don’t get health insurance or other benefits and as Tom Sowell reminds us, “working existing employees overtime doesn’t add to the cost of their benefits.”
Businessmen are not fools. They might have a ton of cash on hand, and most do, but they’re not about to spend any of that on full time help. Businesses don’t know what to expect from BO, who seldom lets a day go by without some new anti-business law or policy.
So you may wonder why things are still slow. But you now have the answer. Why is it necessary to put down 2500 words when a few will do? For those who tell you, “No, it is just not that simple,” recall the old maxim, that complexity provides the last refuge for the scoundrel. In this case, that’s the left.
Robert Craven
A gracious partner in debate is our nurseryman friend. His business could not be more discretionary. Thus, it is suffering. When we delicately pointed to the cause he instead blamed it on, naturally, Bush and the banks. But this is an impossibility; the two are not related.
We have featured quote after quote from business leaders answering the question - Why are you not hiring? Their answers share a thread AND IT IS NOT LACK OF DEMAND; it is the perceived burdens to be placed on them by BO. Easy. Yet our friend can’t admit it, or at least won’t, even if he heard it, and he did, from the horses mouth. He cannot bring himself to admit that he voted for an extremist.
Patience. OK, let’s try again.
We have another friend who with his family owns a large employment company in Marin. His told us last week that his business is booming - not for full time, but for temps. Know why? Right. Temp workers don’t get health insurance or other benefits and as Tom Sowell reminds us, “working existing employees overtime doesn’t add to the cost of their benefits.”
Businessmen are not fools. They might have a ton of cash on hand, and most do, but they’re not about to spend any of that on full time help. Businesses don’t know what to expect from BO, who seldom lets a day go by without some new anti-business law or policy.
So you may wonder why things are still slow. But you now have the answer. Why is it necessary to put down 2500 words when a few will do? For those who tell you, “No, it is just not that simple,” recall the old maxim, that complexity provides the last refuge for the scoundrel. In this case, that’s the left.
Robert Craven
Sunday, July 11, 2010
Dem Governors - Expecting Something From Nothing
By now we’ve all heard Democratic governors sound off, every one critical of Obama’s stimulus effort. “I’m disappointed in Washington,” said Ill gov Pat Quinn. “They don’t understand how you fight a recession. The federal government has to run a deficit in recessionary times because we’ve got to get out of the ditch.”
It is Quinn who does not understand how to "get out of the ditch."
“I think the bottom line is they’re not seeing the jobs that should have come from it,” says West Virginia gov Joe Manchin. “They oversold the job creation part of it,” says Colorado gov Bill Ritter.
Sorry Manchin and Ritter but there are no jobs to come of it, not on a net basis anyway and that is true no matter how much $ BO throws down the drain.
Review: Where in the world does the “stimulus” money come from? A slush fund of some sort, held in reserve all these years for just such an emergency? No, it comes from 1) taxes or 2) borrowing or 3) inflation. Higher taxes mean less spending, business, all of us.. US gov’t borrowing means crowding out the private sector, the employer. Inflation (accommodative Fed) means pain for all.
It’s that simple. There is not one drop of evidence that FDR’s or any other gov’t spending programs created jobs on a net basis and plenty that they have not. We have cited many of these in past blogs. BO’s programs are at best a wash.
But at least the Democrats are consistent. Their signature failure is to always and everywhere take what appears to be the easy way out, or pretend to. Their followers take the bait. Now it’s come back to haunt them.
Robert Craven
It is Quinn who does not understand how to "get out of the ditch."
“I think the bottom line is they’re not seeing the jobs that should have come from it,” says West Virginia gov Joe Manchin. “They oversold the job creation part of it,” says Colorado gov Bill Ritter.
Sorry Manchin and Ritter but there are no jobs to come of it, not on a net basis anyway and that is true no matter how much $ BO throws down the drain.
Review: Where in the world does the “stimulus” money come from? A slush fund of some sort, held in reserve all these years for just such an emergency? No, it comes from 1) taxes or 2) borrowing or 3) inflation. Higher taxes mean less spending, business, all of us.. US gov’t borrowing means crowding out the private sector, the employer. Inflation (accommodative Fed) means pain for all.
It’s that simple. There is not one drop of evidence that FDR’s or any other gov’t spending programs created jobs on a net basis and plenty that they have not. We have cited many of these in past blogs. BO’s programs are at best a wash.
But at least the Democrats are consistent. Their signature failure is to always and everywhere take what appears to be the easy way out, or pretend to. Their followers take the bait. Now it’s come back to haunt them.
Robert Craven
Friday, July 9, 2010
Bringing It Home
It’s awfuly slow going now days, especially for those unfortunates whose income is linked to discretionary products - picture frames, vacation homes, new plants all come to mind.
We’ve highlighted just why this recovery is so retarded. Few argue with us. And most don’t care, figuring it’s out of their hands; or more likely, figuring they fouled up big time at the voting booth and no sense dwelling on that little mistake. OK, forgive them Lord. Now what?
Let’s see what we can all agree on. We all know that the Kennedy and Reagan recoveries were rapid. Since both these guys lowered taxes and then stepped aside, it’s reasonable to assume that had something to do with it. If anything else had something to do with it, we haven’t heard.
OK, and Reagan’s recession was a tad more severe than this one. But presto, we were up and away. We can all agree on that. What about this time? Why the frustration?
In several past blogs we have explained the discrepancy. So have others. Let’s consider some, these from the front lines.
Few would argue that Jeff Immelt, chairman and CEO of GE is 1) an eccentric, or 2) stupid or 3) partisan. Immelt said the following, “Business did not like the US president and the president did not like business,” this from a recent Heritage report.
Verizon CEO Ivan Seidenberg said, “By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses.”
And then from the left's Washington Post, a columnist asked business leaders what in the world is wrong. Here is what he got back: “Business leaders told Zakaria that it comes down to economic uncertainty surrounding new laws, regulations and taxes; the expansion of federal agencies' authority; and the unknown implications of Obamacare, financial reform and cap-and-trade.”
Now friends, if you’re willing to make the obvious trade off, fine. That is, you voted for a statist with the most partisan voting record of any other individual in the Senate. Any fool knew that and so did you. You knew exactly who you were voting for. Now, your nursery business is in the tank. But you’re an up front guy, not a hypocrite; that’s how you are doing your bit for a better America. You’re no more just talkin the talk like most of your kind here in Marin. You’re walkin the walk. And with your own money.
Robert Craven
We’ve highlighted just why this recovery is so retarded. Few argue with us. And most don’t care, figuring it’s out of their hands; or more likely, figuring they fouled up big time at the voting booth and no sense dwelling on that little mistake. OK, forgive them Lord. Now what?
Let’s see what we can all agree on. We all know that the Kennedy and Reagan recoveries were rapid. Since both these guys lowered taxes and then stepped aside, it’s reasonable to assume that had something to do with it. If anything else had something to do with it, we haven’t heard.
OK, and Reagan’s recession was a tad more severe than this one. But presto, we were up and away. We can all agree on that. What about this time? Why the frustration?
In several past blogs we have explained the discrepancy. So have others. Let’s consider some, these from the front lines.
Few would argue that Jeff Immelt, chairman and CEO of GE is 1) an eccentric, or 2) stupid or 3) partisan. Immelt said the following, “Business did not like the US president and the president did not like business,” this from a recent Heritage report.
Verizon CEO Ivan Seidenberg said, “By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses.”
And then from the left's Washington Post, a columnist asked business leaders what in the world is wrong. Here is what he got back: “Business leaders told Zakaria that it comes down to economic uncertainty surrounding new laws, regulations and taxes; the expansion of federal agencies' authority; and the unknown implications of Obamacare, financial reform and cap-and-trade.”
Now friends, if you’re willing to make the obvious trade off, fine. That is, you voted for a statist with the most partisan voting record of any other individual in the Senate. Any fool knew that and so did you. You knew exactly who you were voting for. Now, your nursery business is in the tank. But you’re an up front guy, not a hypocrite; that’s how you are doing your bit for a better America. You’re no more just talkin the talk like most of your kind here in Marin. You’re walkin the walk. And with your own money.
Robert Craven
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