Archive for the ‘Must Reads For The Week’ category

Must Reads For The Week 11/18/17

November 19, 2017

Tom Coburn Has A Plan To Fight Washington And Save America, by Mark Hemingway, at What can be done to shrink the power of the Federal government over our lives if our elected representatives won’t do it? Excerpt from the article: “Coburn’s latest book, Smashing The DC Monopoly: Using Article V to Restore Freedom and Stop Runaway Government, …..spells out exactly what’s wrong with Washington……..Coburn’s….. book really serves two purposes. The first is to convince ordinary Americans that the problems in Washington are so dire they require dramatic action that elected politicians are unwilling to take. The second is to explain how ordinary voters and state politicians have the power to exploit an obscure constitutional process, known as an Article V convention, to bypass Washington and amend the Constitution to institute badly needed reforms, such as a balanced budget amendment and term limits……Much of the book, however, is dedicated to explaining what Coburn believes is America’s last best hope: an Article V convention….. the founders always intended this provision to be a significant check on the growth and abuses of the federal government, and it’s actually surprising that this method for passing amendments has never been exercised. Hamilton argued in the Federalist papers that this mechanism was put in place so Americans could “safely rely on the disposition of the state legislatures to erect barriers against the encroachments of the national authority.”

Congress Owes Taxpayers Answers About Its Harassment ‘Shush’ Fund, at Here is a perfect example of the ruling aristocracy not living under the same set of rules it places on us. Congress has set up a fund using taxpayer dollars to settle sexual harassment accusations against their members. And the perps names are sealed. This fund was created (slipped in) after a Republican Congress passed the 1995 Congressional Accountability Act. Do you think this constrains sexual harassment by members of congress? Or does it incentivize sexual harassment?

“Economic Development” Is A Corporate Welfare Scheme, by Nathan Keeble, at Many think Government subsidies and tax breaks to certain businesses will spur economic development. But they are incorrect. Excerpt from the article: “Corporate welfare must come to an end if we want an economy which best fulfills its purpose, improving the lives of the most amount of people. The truth is that good businesses simply do not need the state’s handouts. Only bad ones do. If legislators truly wish to see their community grow and develop, they would be wise to pursue other reforms. The best path for a legislature to take is to get themselves out of the private sector’s way. Economic growth is slowed, halted, or even reversed when the state taxes, regulates, or otherwise violates private property rights. Removing licensing laws, lowering taxes, and repealing burdensome regulations would all be great choices to accelerate economic development and promote the welfare of local communities. Crucially, these reforms should be as generally applicable as possible to avoid the same harmful and distorting effects of the current corporate welfare programs.

We Are Living In The Age Of Capital Consumption, Ronald Peter Stoferle, at Excerpt from the article: “Capital formation is always an attempt to generate larger returns in the long-term by adopting more roundabout methods of production. Such higher returns….. result in greater productivity. It is therefore fair to assume that a more capital-intensive production structure will generate more output than a less capital-intensive one. The more prosperous an economic region, the more capital-intensive its production structure is. The fact that the generations currently living in our society are able to enjoy such a high standard of living is the result of decades or even centuries of both cultural and economic capital accumulation by our forebears……Once a stock of capital has been accumulated, it is not destined to be eternal. Capital is thoroughly transitory, it wears out, it is used up in the production process, or becomes entirely obsolete. Existing capital requires regularly recurring reinvestment, which can usually be funded directly out of the return capital generates. If reinvestment is neglected because the entire output or more is consumed, the result is capital consumption……..Once zero or even negative interest rate territory is reached, the return on saved capital is obviously no longer large enough to enable one to live from it, let alone finance a reasonable standard of living. Consequently, saved capital has to be consumed in order to secure one’s survival. Capital consumption is glaringly obvious in this case……At the same time, the all-encompassing redistributive welfare state, which either directly through taxes or indirectly through the monetary system continually shifts and reallocates large amounts of capital, manages to paper over the effects of capital consumption to some extent. It remains to be seen how much longer this can continue. Once the stock of capital is depleted, the awakening will be rude”

Read my simpler explanation about capital consumption in this article, Capital consumption, aka, Eating Our Seed Corn.

Looking For Inflation In All The Wrong Places, at Printing money is the definition of inflation. Central banks hide inflation by pointing to the movement in the price of a “basket of goods” which they track over time. But the  printed money has not significantly raised the price of the ‘basket of goods’ over the last decade. So where did the printed money end up. First of all it has allowed the Federal government to grow because it has funded the government’s debt. And It has found its way into stocks, bonds, real estate, fine arts, collectibles and cryptocurrencies. The spike in the prices of these things shows us where the money is flowing. These central bank produced bubbles will eventually correct when the money printing stops. Government intervention into the free market, especially Federal Reserves money printing, only helps individuals directly involved with government or individuals in orbit around government. The rest of us are funding these individuals.

The Free Market Levels The Playing Field, by Jacob Hornberger, at Excerpt from thee article: “Consumers in a free market, not the government, do the equalizing and leveling, and, unlike the government, they do it peacefully and voluntarily. It is consumers who decide who is going to prosper and who isn’t. They not the government, is sovereign in a free market. How do consumers redistribute and equalize wealth? Through their decisions on what to buy and not to buy. By making those decisions, they decide who is going to be rich, poor, or middle class. In a free market there is only one way that a well-established, wealthy company can retain its position in the market. It must continue to satisfy the consumer by providing him with goods and services that he is willing to pay for. A company cannot force its customers to patronize it or forcibly take money from people to subsidize its operations. It must serve people by providing them with goods and services that they are voluntarily willing to pay for. Leftists are wrong. We don’t need government to destroy freedom and private property by coercively confiscating and redistributing wealth. The free market does a fine job redistributing wealth all by itself, and entirely voluntarily.”


Must Reads For The Week 11/11/17

November 11, 2017

Donald Trump Didn’t Create Danger Of Presidential Dictatorship…..He Inherited It, at Over time the Presidency has incrementally stolen more power than the Constitution allows.      Excerpt from the article: “The sheer amount of punitive power possessed by the federal government is one of the best gauges of potential tyranny. do we really need 4,000 federal criminal laws and 200,000 regulations with criminal penalties to punish wayward citizens? As Benjamin Constant wrote in 1815, “It is in fact the degree of force, not its holders, which must be denounced. …There are weights too heavy for the hand of man.” Unfortunately, many Trump opponents will never make an adverse inference against arbitrary power because they seek to put government itself back on a pedestal. Trump won the election last year in part because he promised to “make America great again.” But America will not be great again until people expect and tolerate far less from presidents. And Only illiterates believe that toppling Trump is the only “dictator insurance: that America needs.”     The executive, legislative and judicial branches of our government have far exceeded their constitutional limits. It is time to rein them in.

Disaster In Red: The Hundredth Anniversary Of The Russian Socialist Revolution, by Richard Ebeling, at Maybe the reason many young people think socialism is a wonderful economic system is because our education system hasn’t taught these kids about the deadly history of socialist central planning. The fall of the USSR in the early 90’s should have settled the argument. Excerpt from the article. “The battle between the ideologies of freedom and individualism versus political planning and collectivism, therefore, continues in slightly different forms and permutations than those expressed in the communist slogans and ideological language of 1917 and after. But the combat is no less real and is no less the same at its foundational basis.”

How Central Banks Widen Wealth and Income Gaps, by Hal Snarr, at Excerpt from the article: “Federal Reserve (Fed) board member Kevin Warsh referred to the Fed’s monetary policy during the financial crisis as being “reverse Robin Hood.” This view has merit because the Fed’s purchases of securities push interest rates down and expand the money supply. The expansion of money then inflates the prices of financial assets, which are disproportionately owned by the rich…..Although the Federal Reserve was created to provide the US with a flexible and stable monetary and financial system, it has not. Its policies have caused economic booms and busts, reduced the value of the dollar to about a penny in just over 100 years, and may be causing substantial income and wealth inequality.”

The Ponzi Scheme That’s Over 100% The Size Of Madoff, at Pension plans are underfunded just like Social Security. When economic reality hits pensioners will have to take cut, or tax payers will be forced to pay the bill. Read this, It Begins: Pensions Bailout Bill To Be Introduced This Week.

Unions Want Freedom Of Association – But Only For Themselves, by Gary Galles, at Unions are in favor of freedom of association. As long as the worker associates with the Union. Freedom of association is not a one way street. It means you can voluntarily decide to associate with someone, and they can voluntarily decide to associate with you. It also means each has the freedom not to associate with the other. It is a two-way street.

Diplomats Fear Tillerson Transparency Push Is Linked To Clinton Emails, by Nahal Toosi, at State department employees who are complaining show their political bias. I thought government employees were non political public servants. Just do your job and shut up. This is how you drain the swamp. Here is an excerpt from the article: “Secretary of State Rex Tillerson’s assignment of as many as several hundred State Department officials to quickly clear a huge backlog of public records requests is being met with deep skepticism by rank-and-file employees…..The staffers also suspect the move — which will reassign many of them from far more substantive duties and has already sparked a union complaint — is meant to force many of them to resign out of frustration with what are essentially clerical positions. The issue spotlights the deepening distrust toward Tillerson at Foggy Bottom, where his attempts to restructure the department, cut its budget and centralize policymaking have already hurt morale.”

Ninety percent of ‘public servants’ are for increasing the size of government. And any individual or group of individuals who want to shrink government is the enemy. (Remember what the IRS did to tea party and liberty groups.)

When Gunmen Strike, You’re On Your Own, by Ryan McMaken, at In any situation you are the first responder, no matter what you decide to do. Because how you respond is the first response. Here is an example- Men with Guns Save More People Than Cynics Like Stephen Colbert, by Eric Hoover, at The mass shooting at a church in Sutherland Springs Texas was stopped by NRA member Stephen Willeford. He used his AR-15.

What Nation On Earth Has Reduced Its Carbon Emissions More Than Any Other, by Mark J. Perry, at carpediemblog. Was it China the communist utopia? Or was it the evil capitalist United States? It’s the USA. Thanks to fracking and efficiency.

Facebook Founder Warns “God Only Knows What It’s Doing To Kids’ Brains“, at You should think about limiting the time you let your kids spend on social media. Excerpt from the article: Founding president of Facebook: “I don’t know if I really understood...the unintended consequences of a network when it grows to a billion or 2 billion people and ….it literally changes your relationship with society, with each other.….It probably interferes with productivity in weird ways. God Only knows what it’s doing to our children’s brains…..The thought process that went into building these applications….was all about: ‘How do we consume as much of your time and conscious attention as possible?‘.

Senate Passes Measure Requiring Sexual Harassment Training For Senators And Aides, at I think the members of this august body already know how to sexually harass women. It is too bad Ted Kennedy isn’t with us anymore. He could teach these Senators a few tricks about how to sexually harass women. Oh! You mean anti sexual harassment training.








Must Reads For The Week 11/4/17

November 5, 2017

King Of The Washington Swamp This Month? Big Ethanol. by Mark J. Perry, at carpediemblog. These ethanol mandates reduce fuel mileage, increase the cost of a gas, shortens engine life and increase pollution. So why is ethanol still mandated? Ask Republican Senators Grassley and Ernst of Iowa. They are protecting their self interest at the expense of the rest of us.

Insider Trading Inc: Beat The Market, Work For The SEC, at Are government employees of the Securities and Exchange Commission benefiting from their knowledge of which companies are going be investigated? It must be one of the perks of being a “public servant”.

Victory IRS Admits Tea Party, Other Conservative Groups Were Targets During Obama Era, by Jay Sekulow, at Why wasn’t this a bigger story? Because we the people forget after six plus years of this mess. A balloon can’t burst when there is no air left in it. The air in this balloon was gradually released over time because bureaucratic insiders working for government agencies can deny deny deny, use every legal tactic to delay complying with judges orders, have the ability to fight using unlimited taxpayer funded resources and benefit from the Obama administration and the media propagandizing for them. It pays to be an insider backed by the force of government.

How Defense-Contractor CEOs Get Rich On The Taxpayers’ Dime, by William D. Hartung, at There is waste and corruption whenever there is a pile of taxpayer money to be spent. It wouldn’t be difficult to find 15% waste in any government budget just for starters. The Pentagon budget is no exception.

Dying Malls Increasingly Rely On Taxpayer Handouts For Survival, at Another example of bureaucrats at all levels of government propping up failed business models at taxpayers expense. An economy is about profits and losses. Profits tell businesses that people in the market like what they produce. Losses tell businesses that people don’t like what they produce, so stop wasting scarce resources by continuing to do what you’re doing. Subsidizing unprofitable businesses makes us poorer overall.

Tesla’s Having The Worst Day Ever As GOP Tax Plan Calls For Axing Electric Car Subsidies, at Speaking of failed businesses being propped up by taxpayer dollars! I think Elon Musk is laundering taxpayer money through Tesla with the approval of government politicians and bureaucrats. Musk’s company is loosing money with the benefit of taxpayer subsidies. What will happen to his bottom line if these subsidies are done away with under the new GOP tax plan? Of will he be able to pay off enough politicians to keep his subsidy.

Compelled Speech, at Government licensing laws can be used to get you to comply with politically correct speech. If you don’t comply they will take away your license to work.

Concealed Carry On The March, Scott McPherson, at Excerpt from the article: “In 2016 Gallup found that the number of Americans supporting a handgun ban had dropped to just twenty-three percent – about one in five. Blacks, women, and Millennials are the fastest growing groups of new gun-owners, belying the stereotype that only old white males care about guns. A major cultural shift is taking place. More than ever, Americans are arming themselves against criminals and madmen in the modern era.”

Spain Order Jailing Of Catalan Leaders: ‘What Happens Next’ To Puigdemont?, at What happens when Catalan secession can’t be settled by legal or peaceful means?

“It’s Not Sustainable” – Sacramento Lashes Our At Calpers After Raising Pension Payments, at At some point economic reality will correct this problem. (California can’t secede. It needs the rest of the country to bail them out when economic reality hits.)

Forestry Regulations Ignite More California Wildfires, by Larry Bell, at The unintended consequences of misguided green policies adopted by the Federal government.

California’s Clean-Energy Future: A ‘Medieval Society’?, by Kerry Jackson, at Politicians make policies with no thought of their economic consequences. Government decrees can’t do away with economic laws. Economic laws always prevail.

Women Should Stop Insisting Men Are Bad Because Of Sexual Tension, by D.C. McAllister, at Excerpt from the article: “Like many women in the #MeToo campaign, I know sexual harassment. I know sexual assault. I know rape. Because of this, I’m not more prone to accept abusive behavior from men…… nor am I prone to conclude that all men are predators. I refuse to live in that kind of fear or to cast wide that net of blame. To do so only leads to dysfunction….. the common sense instruction I’ve received from wise women throughout my life have, instead, empowered me to navigate the waters of male sexuality with discernment and confidence.”

“I know when a man is violating me and when he is just hitting on me. I know when a man is desperately trying to get my attention just because he is attracted to me, and when he has crossed the line of harassment. I know when guys are expressing their pent-up aggression and male sexuality—as well as their competitive nature—as they interact with one another, and when men are in gang-like mode and threatening my well-being.”

“Other women need to learn the same…… They need to meet masculinity toe to toe and eye to eye, not try to dominate it or diminish it. They need to learn to tap into their own feminine powers, not to conquer a man, but to respect him. To do that, we need to respect each other. This involves trust.”

“The problems we are facing today have nothing to do with masculinity, and everything to do with a breakdown in social trust. Women live in fear of men, and men live in resentment of women. We aren’t dancing. We’re fighting. I hope we can learn to dance again—a powerful, breathtaking dance that makes us feel alive, complete, and fully human.”






Political Cartoons by Steve Kelley




Must Reads For The Week 10/28/17

October 30, 2017

Spain PM Fires Catalan Government, Calls Snap elections In Retaliation For Independence Vote, at Government is force. This is how all governments will react when people in their countries think it is “….necessary to dissolve the political bands which have connected them with another….” If the EU had more power, it would have forced Great Britain to stay in the EU.

Bill Gates Tacitly Admits His Common Core Experiment Was A Failure, by Joy Pullmann, at Instead of going back to what has worked in the past, they will probably try to implement some new theory that is similar to their failed old theory.

Professor Claims Math, Algebra, And Geometry Promote “White Privilege“, at How can you take this professor seriously? Math can’t possibly know the race of the people who understand or don’t understand it. I listen to nothing someone says after they use the term ‘white privilege’. Terms like racist and white privilege are used so frivolously that they no longer have any power.

Thomas Sowell On Slavery And This Fact – There Are More Slaves Today Than Were Seized From Africa In Four Centuries, by Mark J. Perry, at Quote from Thomas Sowell: “Of all the tragic facts about the history of slavery, the most astonishing to an American today is that, although slavery was a worldwide institution for thousands of years, nowhere in the world was slavery a controversial issue prior to the 18th century. People of every race and color were enslaved – and enslaved others. White people were still being bought and sold as slaves in the Ottoman Empire, decades after American blacks were freed.”

“Everyone hated the idea of being a slave but few had any qualms about enslaving others. Slavery was just not an issue, not even among intellectuals, much less among political leaders, until the 18th century – and then it was an issue only in Western civilization. Among those who turned against slavery in the 18th century were George Washington, Thomas Jefferson, Patrick Henry and other American leaders. You could research all of the 18th century Africa or Asia or the Middle East without finding any comparable rejection of slavery there. But who is singled out for scathing criticism today? American leaders of the 18th century.”

Core Competency, at 90% of Trumps cabinet have worked in the private sector before being appointed. Only 8% of Obama’s cabinet had worked in the private sector before they took their new government position. No wonder the Obama administration hated the private sector which, by the way, funds the big government public sector.

Why Congress Needs To Reinforce Trump’s Regulatory Neglect, by Robert Trancinski, at Trump is slowly dismantling the regulatory bureaucracy. But it won’t last if congress doesn’t codify these roll backs into law.

Tesla Starts A Whole New Round Of Mass Firings, This Time At Solar City, at I have said before that I think that Elon Musk is a scam artist. And the taxpayers are getting fleeced by him. He owns Tesla, SpaceX and Solar City. What do they have in common? They are all subsidized by the tax payer to the tune of hundreds of millions of dollars. Read about all the subsidies Click here.

Illinois Eyes 30 Cent Gas Tax Hike, Chicago Faces Yet Another Property Tax Hike, at Why can’t Governments even consider cutting spending? They’re Pavlovian response to deficits is to raise taxes. Politicians have caved in to public sector union pensions for years and the reality of these decisions is now hitting them square in the face.










Must Reads For The Week 10/21/17

October 23, 2017

FBI ‘Hand-In-Hand’ With Vegas PD, Begin Damage Control: “There Is No Conspiracy….Nobody Is Attempting To Hide Anything, and Vegas Massacre Timeline Changes Again, at I think the FBI wants the conspiracy theorists to talk about a cover up in the Vegas shooting. Why? So they can paint the conspiracy theorists as crazy conspiracy theorists.

Bipartisan Bump Stock Bill Would Actually Ban All Semi-Automatic Rifles, at The written text of most legislation is a trojan horse. The real intent is hidden inside the muddied text of most bills. The true intent will be revealed when a court twists the meaning of some obscure phrasing in the text. Most bills couldn’t get passed if the text was clear. And always remember this rule: Beware of “bipartisan” legislation.

New California Law Allows Jail Time For Using Wrong Gender Pronoun, Sponsor Denies That Would Happen, at The sponsor of the law, Dem Sen. Scott Wiener, has stated that nobody is going to be criminally prosecuted for using the wrong pronoun. What Wiener is really saying is, “trust me, the law doesn’t say what it actually says”.

Penguins Die Due To Too Much Ice In Antarctica, at Wait a minute. The global warming science promoters told us the polar ice caps were melting.

E.P.A. Announces Repeal Of Major Obama-Era Carbon Emissions Rule, at Environmental groups are going to challenge this move in Federal court. They are going to challenge on both “scientific and economic grounds”. Shouldn’t the environmental groups challenge this on legal grounds. If the EPA implemented these rules under Obama, can’t the EPA just as easily get rid of the rules under Trump?

There Are 2.7 Trillion Reasons Why Tesla Won’t Rule The World, at Tax dollars are being used to subsidize the building and purchase of Elon Musk’s electric cars. This means there is no true market for these cars. It would cost $2.7 trillion to build charging station infrastructure for the fake demand for these electric cars. Folks here is my opinion so you can take it or leave it. Elon Musk is a scam artist.

Cheap Eggs Are Ruining The Cage-Free-Movement, at Economic laws of supply and demand always win. Here is an excerpt from the article: “The egg oversupply built up after the 2015 avian-flu outbreak killed tens of millions of chickens, sent prices soaring and spurred aggressive restocking. At the same time, some producers started expanding hens’ living quarters.” This is a perfect example of how prices work to bring supply and demand into line. The cage free people made a bad entrepreneurial decision when the price of eggs had sky rocketed. Most of the people who demand eggs don’t necessarily care if they are cage free eggs.

Colin Kaepernick Files Grievance Against NFL Owners For Collusion, at Colin Kaepernick and Tim Tebow are the same. Both are not good enough to be starters in the NFL. Both are probably good enough to be backups. But when you are a backup, you can’t be a distraction. Tebow wore his Christianity on his sleeve and owners thought it became a distraction. Owners thought Kaepernick’s political stand became a distraction. But if both were as good as Tom Brady, they would be starting for an NFL team. You have to be better than your “problems”.

Does LeBron James’s Concern About ‘Equality’ extend To The 98.9% Very Unequal ‘Gender Pay Gap’ For The WNBA vs. NBA?, at carpediemblog. LeBron James is one of the greatest players to ever play basketball. It is amazing to watch the things he does on the court. But LeBron is not my go to guy for understanding economic, political and social issues. Mises, Hayek, Rothbard, Sowell, and some others are my go to guys when it comes to understanding how the world works.

Hartford Could Default On Its Debt As Soon As Next Month, Moody’s Says, at Another example of how public sector unions are destroying city and state budgets. But politicians are also to blame for the debt problems. When politicians negotiate contracts with unions they have no incentive to tell unions no. Why? Because it’s not their own money they are bargaining with it is the tax payer’s. Excerpt from the article: “Moody’s called Hartford’s unions “a constraint” to trimming the city’s deficit. “Contractual salary increases and employee benefits are significant contributors to the city’s long-term structural imbalance.” Unions would have to make “significant concessions” for Hartford to narrow those deficits.”



Political Cartoons by Robert Ariail



Must Reads For The Week 10/14/17

October 15, 2017


Our Crazy-Making, Profiteering Education Career Maze, by Charles Hugh Smith, at CHS lists 7 things that you would do if you wanted an education system that fails. He calls our current education system a “career maze”. By design, a maze is difficult to get out of. The question is; who does our education system benefit? The students? No! The beneficiaries are the receivers of the borrowed money.

Excerpt from the article: “Clearly, it would be enormously beneficial to teach the skills needed to learn on one’s own and adapt successfully to changing circumstances. The current system is a hierarchy of credentialing that enriches those dispensing and funding the credentialing…………When the student graduates after borrowing a fortune and discovers their diploma has low value in the marketplace or is in a field they’ve found they loathe, then suggest the “solution” is to borrow another fortune and invest more years in obtaining another credential.”

The answer is always the same. Do more of what got you in the mess in the first place.

How Higher Education Became A Obscenely Profitable Racket That Enriches The Few At The Expense Of The Many (Student Debt Serfs), by Charles Hugh Smith, at Another article by CHS concerning our education system. He offers great analysis. Excerpt from the article: “Student loan lenders are skimming tens of billions in profits guaranteed by the taxpayers…….The number of employees in central system offices has increased six-fold since 1987, and the number of administrators in them by a factor of more than 34…..While the higher-ed status quo is failing the students, it’s enriching itself immensely Assistant deans of student loans and thousands of other administrators who be managed to do without a generation ago are racking in huge salaries and fat benefits/pensions.

Financialization And The Destruction Of The Real Economy, by Charles Hugh Smith, at What happens when government leaders regulate a free market economy so much it becomes a crony capitalist (or crony socialist) economy, and the central bank (our Federal Reserve) prints (counterfeits) money? The real economy starts to consume it’s own seed corn (capital). Whoever has access to the printed money first is stealing the production of the people who don’t have access to the printed money (that would be you and me). The economy gets hollowed out similar to what termites do to wood. Termites eat the joists in a floor and the studs in a wall from the inside out so all that remains is the veneer of stability, but no interior strength.

Excerpt from the article: “Strip an economy of capital, productive incentives, talent and yes, ethics and what are we left with? An economy spiraling toward an inevitable collapse…….like a Yellowstone forest fire. The deadwood of bad debt, extreme leverage, zombie companies and all the other fallen branches of financialization pile up. But the central banks no longer allow any creative destruction of umpayable debt and mis-allocated capital; Every brush fire is instantly suppressed with more stimulus, more liquidity ad lower interest rates. As a result the deadwood sapping the real economy of productivity and innovation is allowed to pile higher. The only possible output of this suppression is an economy piled high with explosive risk. Eventually Nature supplies a lightning strike, ad resulting conflagration consumes the entire economy.”

More Spending Does Not Drive More Employment, by Per Bylund, at Excerpt from the article: “There is no escaping the fact that production precedes consumption in a very real and fundamental sense: that entrepreneurs endeavor in production before they know that they will be able to sell the goods produced. Spending is a possible outcome of entrepreneurial production, but not the other way around. The former does not employ people, but the latter does…..What drives the economy is not demand or spending, but entrepreneurship and production. In other words, entrepreneurs bear the uncertainty of their enterprise. They anticipate that consumers will value their goods and, based on this, estimate the price. That price, in turn, determines what costs and entrepreneur can reasonably expect to cove in production, which means the entrepreneur’s actual choice is for the cost structure in production – the price is an anticipation of consumer value.”

What does this mean? Production is the creation of wealth. The more you produce the more wealthy you become. Spending on the other hand, is the consumption of what has been produced. It is the destruction of wealth. This is true even though we know the reason we produce is so we can consume. We either consume what we produce, in the present, or we save what we produce for consumption in the future. We also use what we save for future production. It is like saving a portion of the corn we produce so we can plant it in the future in order to produce more corn. Production has to stay ahead of consumption or we start eating our seed corn (capital consumption).

The Myth Of Infrastructure Spending, by Ryan McMaken, at Does infrastructure spending stimulate economic growth and create jobs? On the surface it seems logical that they do. Deeper analysis shows us a different picture. Excerpt from the article: “….it is assumed that government infrastructure programs were all necessarily “proven winners” for the metaphorical construct known as “the economy……But infrastructure spending is not some one-time thing that blesses the nation with new wonderful things that everyone can use indefinitely. It is often a commitment to simply spend much more money in the future. So, you’d better be sure you’re buying exactly what you need……. Building a new bridge or a new road brings totally unproven or hypothetical benefits, especially….. in less industrially dense areas. What’s worse, the promoters of such spending do not take into account the opportunity cost of the spending. After all, this sort of spending requires that the money must first be removed from the pockets of taxpayers. It is assumed that this is justified because it creates “stimulus.” It creates new jobs in building highways, and makes roads everyone can use. But what would the taxpayer and the worker have done in the absence of that spending?”

“……Borrowing immense sums to spend on infrastructure that doesn’t boost productivity actually cripples an economy by channeling scarce capital and tax revenues into projects that only boost spending for a few years at best, while the costs of borrowing the money pile up for decades to come……If a new highway is needed in Peoria, let the Peorians pay for it, either with a toll road or local taxes. If the benefits of infrastructure spending is so abundantly obvious, then it will pay off for every metro area that builds a new road. The great benefit of federal spending on infrastructure, however, is that the new spending can be forced on the taxpayers with much less political effort than would be required to obtain a new local tax.”

Paul Krugman Destruction Worshiper, at It is hard to believe that economists could think that destruction of things which still have years of service left is some how stimulative to an economy. Have they never heard of the ‘broken window fallacy’? Or are they too smart to understand something so basic? Excerpt from the article: “ Ludwig von Mises once allegedly tried to encourage his students to speak up more freely in class by saying: “Don’t be afraid to speak up. Remember, whatever you say about the subject and however wrong it might be, the same thing has already been said by some eminent economist.”







Must Reads For The Week 10/7/17

October 8, 2017

To Combat “Hate,” Make Government Weaker, by Justin Murray, at Excerpt from the article: “Politicians are actively tapping into modern stress that is generated by the state itself. Emotion is a powerful political motivator. People are heavily motivated to believe things that hit their emotions strongly……..Simply asking people to get along isn’t going to work so long as there is a massive power structure in place that is driving the actual fear. If the people are afraid of the Trumps and KKKs of the world, they could demand their politicians dismantle the power structures at the federal level so it cannot be taken over by disfavored groups and reinstall them at a local level where it is far easier to control who hold the reins of power.”

San Franciscans Pissed To Learn Their Liberal Policies Caused A Wave Of Restaurant Failures, at Socialists in San Fran are dealing with the consequences of their economic policies. Restaurants are closing because of the increase in the minimum wage, heath care costs and rents. Because of the closings, it is difficult for them to find fine dining at an affordable price. The sad thing is they probably don’t understand that it is their policies that caused the closings.

To Seattle City Council: Do Higher Prices And Wages Reduce Demand Or Not? , by Mark J. Perry, at carpediemblog.

Here Are The Congressional Aides that Traded On Insider Information Over The Past Year, at This is the breakdown of the rule of law. When our “public servants” don’t have to follow the law, regular people get pissed off. Especially when they are getting dinged for a seat belt violation or speeding ticket. If laws don’t apply to them, we won’t follow the laws. The breakdown of the rule of law starts with them. Not us.

NCAA Violations Are Now Federal Crimes? William L. Anderson, at Excerpt from the article: “So far, we are looking at what, frankly, are garden-variety (with the added twist of shoe company money) NCAA violations in which players or their families receive monetary or in-kind compensation that goes beyond the standard athletic scholarship of meals, books, tuition, fees, and board. Furthermore, the prospect of making these actions into federal crimes truly brings a new and, frankly, perilous dimension to federal criminal law.

Obama-Era Surveillance Timeline, at You must look at the timeline in this article. It will blow our mind. You have probably forgotten most of these incidences.

Utah Cop Wants To Apologize For Cuffing Nurse, at A few weeks ago we posted the video of the cop who temporarily arrested the nurse because she wouldn’t let him draw blood from a patient (click here to see the post). Now he wants to apologize for the “mistake” he made. Watch the video and ask yourself if this was a “mistake”. What does the word mistake mean. A mistake is when you make a math error in your check book. This guy acted intentionally.

The Progressive Octopus, at From the media, to Hollywood and entertainment, to sports, to our education system especially colleges, you can’t escape the progressive ideology. Most non progressives have reached their limit and won’t concede any more ground. Finally!

California Mulls Combustion-Engine Car Ban: “You Can Stop All Sales By 2030, at The politicians in California are going to try to do away with the economic law of supply and demand. If you out law gasoline powered cars. And you’re thinking about mandating your state go to all green energy by 2040. Can you produce enough energy to power your state? Will the price of that energy be low or high? The utopian world of politicians can’t exist in the real world.

7 Independence Movements That Could Destroy The EU, at Decentralization of government power is what the masses want. They are sick of being told what to do by the anointed. Tyrants with government sanctioned power will not want to give up that power. We are living in interesting times.