Posted tagged ‘Seen and Unseen’

Must Reads For The Week 4/2/16

April 2, 2016

Feds To Fine Schools For Not Following Michelle Obama’s Lunch Rules, at tammybruce.com. The Department of Agriculture’s Food and Nutrition Service is going to fine schools who don’t abide by the regulations set forth by The Healthy Hunger-Free Kids Act. They will fine schools for ‘egregious or persistent disregard’ for the rules imposing limits on sodium and calorie intake and banned white grains. Two questions. 1) Did you know there was a Food and Nutrition Service agency as part of the Dep. of Agriculture? 2) Who decides what constitutes ‘egregious” and “persistent disregard’? This has been a disaster from the start, read, Healthy, Hunger-Free Kids Act Doesn’t Work As Planners Planned. Read, Michelle’s ‘Eat What I Tell You To Eat’ Program is Crashing. Read, Black Market In Food Items Springs Up In Schools, Thanks Michelle. I like that people have decided to not complying with the law. This is the spirit of our founding fathers.

At Emory University, Writing ‘Trump 2016’ On Sidewalks Is A Racist Microaggression, by Robby Soave, at reason.com. No comment needed.

Mises: The Individual Within Society, at mises.org. Article taken from ‘Human Action’ by Ludwig von Mises. Here is an excerpt; “The natural condition of man is extreme poverty and insecurity. It is romantic nonsense to lament the passing of the happy days of primitive barbarism. In a state of savagery the complainants would either not have reached the age of manhood, or if they had, they would have lacked the opportunities and amenities provided by civilization. Jean Jacques Rousseau and Frederick Engels, if they had lived in the [p. 166] primitive state which they describe with nostalgic yearning, would not have enjoyed the leisure required for their studies and for the writing of their books.”

When Will This Awfulness Be Over?, by Jessica Hagy, at thisisindexed.com. Jessica Hagy puts a lot of insight on 3 by 5 cards using venn diagrams, charts, and graphs. Here is the best insight I’ve seen about the election season.

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Apple Has Done It Again, at theburningplatform.com. I don’t know if this is true, but it is funny. “Apple has announced that it has developed a computer chip that can store and play Hi Fi music in women’s breast implants.” Go to the article for the punchline.

CIA Leaves Explosive Materials On School Bus, at targetliberty.com. The CIA borrows a bus for a training exercise. They return it to the school district but forgot to take the explosives out of the bus. Mechanics found the explosives after the bus was back in service for 2 days. I can here the agents conversation when the exercise was over; “Are you sure we have everything? I feel like we’re forgetting something.” And we’re trusting government with our healthcare? Whisky Tango Foxtrot!

The Climate Change Central Planners, by Robert J Murphy, at instituteforenergyresearch.org. Excerpt from the article; “It is an unbelievable act of hubris to suppose that a group of natural scientists and economists, armed with computers, can today make quantitative predictions of how much massive new taxes and draconian regulations will make people better off in the year 2150. And yet this is precisely what today’s central planners do from 9-to-5 in the office.

Hillary Investigation Enters a Dangerous Phase, by Andrew Napolitano, at lewrockwell.com. Is the FBI just dotting all the I’s and crossing all the T’s? Is the ruling aristocracy trying to figure a way out of indicting the Democrats nominee? Are the Clinton’s trying to bribe someone to take the fall? Will the rule of law prevail; or will the break down of the rule of law continue?

Price Controls May Be On The Way, by Paul-Martin Foss, at mises.org. If fixing the Fed fund rate at 0% since 08 hasn’t worked, why would central planners think price controls would work? Nixon tried wage and price controls in the 70’s. How did that work out?

The Seen and Unseen, by Walter E. Williams, at jewishworldreview.com. Walter E. Williams examins the results of the Bush administrations 2002 tariff on imported steel using Bastiat’s suggestion to look beyond what is in front of you so you can see the whole picture.

What Is Seen And What Is Not Seen.

May 15, 2014

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Frederic Bastiat was an economist in France during the mid 1800’s. His essay, That Which Is Seed and That Which Is Not Seen, starts like this: “In the economy, an act, a habit, an institution, a law, gives birth not only to an effect, but to a series of effects. Of these effects, the first only is immediate; it manifests itself simultaneously with its cause – it is seen. The others unfold in succession – they are not seen: it is well for us if they are foreseen. Between a good economist and a bad economist this constitutes the whole difference……the bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, at the risk of a small present evil.”

SEEN AND UNSEEN CONSEQUENCES OF FOOD STAMPS

I read this article titled, American Dependency (And The Third Day Of The Month Effect), by Rory of  The Daily Coin at zerohedge.com, about the growing number of people, {almost 50 million} on food stamps, and Bastiats essay immediately came to mind. What is seen is the supposed benevolence of politicians and bureaucrats helping hungry people get food for their survival. What is not seen is the abuse of the system by people who don’t need assistance but take it any way, and also what happens on the retail, whole sale, and administrative side of this equation.

Must See Video!

UNSEEN INCENTIVES FOR THE CONSUMER AND PRODUCER

Under this program people who qualify are able to use their debit card to purchase things other than food, like cigarettes, booze, and lottery tickets. They can also sell these cards for cash to fund other purchases. People who qualify for the food stamps, but don’t need them, can use the money they would have spent on food every month to purchase anything they want. The woman in the video paid $9,000 for breast implants while she was getting $700 a month in food stamps.

Grocery stores and convenient stores are benefiting because of the increase in sales brought about by the food stamp program. The Snack Food Association, and the American Beverage Association represent whole sale companies like Coke, Frito Lay, Pepsi, Sunny Delite, and Nestle to name a few. These associations lobby Government for the food stamp program to offer as many choices to the consumer as possible, which of course means these companies products. JP Morgan Chase makes millions being the administrator of the debit cards used for this program. I’m sure big agricultural companies lobby for this program just like they lobby for ethanol mandates.

This is what happens when “good” politicians {bad economists} pursue a small present good”. The unforeseen incentives that are created, unleash a chain of actions that increase the demand for the Government program. The consumers, the suppliers, and the Government administers of the program all have a similar incentive, which is to grow the program.  When there is a pile of tax payer dollars to be spent, the line of people who are trying cash in stretches for miles. The food stamp program is welfare for people and companies at every level.

CONSUMPTION PAID FOR WITH COUNTERFEIT MONEY

Food stamps are just another way our Government counterfeits money. The “dollars” on these debit cards are just numbers put into a person’s account by a key stroke on a computer. Since the Government borrows 40 cents of every dollar it spends, 40% of the numbers printed into these accounts don’t exist. The government will eventually borrow the money, the Fed will purchase the debt using electronically printed counterfeit money, the Fed will continually roll over the debt when it comes due, and you and I will pay for 60% of this consumption through direct taxation, and the other 40% through the hidden tax of inflation. When do we pass the point of no return, or have we already passed it?