Mar
19
On the Obama ‘Town Hall’ (Rally)
Filed Under Economics | 2 Comments
Yesterday, President Obama held a rally in California (he called it a town hall) to garner support for his budget. While a lot of topics were covered, I want to focus on one important part:
Let’s talk tax policy for a second, because, again, some on the other side have said, oh, Obama, he’s a tax-and-spend Democrat — tax and spend. Well, it turns out, yes. You know, what I’ve said is we should return to the tax rates that we had under Bill Clinton, which means — which means this: which means that for people who are making more than $250,000 a year, they would pay instead of 36 percent, they’d pay 39 percent. Like, a 3 percent increase on their tax rate.
Now, these folks can afford it. They were rich — they were rich back in the ’90s. It’s not like suddenly they’re going to have to go to the poor house. But what that does is it allows us to pay for health care reform for a lot of people who are out there working every day but are just one illness away from bankruptcy.
Now, that’s — I don’t think that’s unreasonable. I don’t think that’s socialism. I think that’s part of understanding that we’re all in this together and that if the middle class is working well, if working people are doing well, then everybody does well. (Applause.) Then they can buy products and services, and businesses will succeed. That’s the philosophy that we are pursuing in this budget; that’s why I need your support.
This is where The One shows that class-envy is at the center of his politics. “These folks can afford it,” he says. Is affordability the qualifier we look at when determining tax policy? If I happen to have an extra $10 at the end of the week, does that mean I have any less claim to it than if I needed it?
Then Obama tries to pass the fallacy that if we tax one individual and give to another, it will stimulate the economy. How does this make sense? If Jack is buying $500 worth of goods and Jill is buying $100 worth of goods, does that make any difference than if they were both buying $300 worth of goods? No. Progressives and Socialists care little about economic growth. They care about shared misery. In a capitalist society, some folks are more adept at finding new products and services, and get richer than others. If we try to ’spread the wealth around,’ these producers will have less capital and incentive to drive this innovation and prosperity. Is equality (if it could be achieved) worth sacrificing all of the benefits we reap from the innovations of the “rich”? Yes, Bill Gates is ridiculously wealthy, but aren’t our lives much better off because of the PC revolution (Mac fans can substitute Jobs for Gates and the iPod for PC)?
Mar
9
A Not So Looney Toon
Filed Under Economics | Leave a Comment
LibertarianRepublican featured the following video from 1948 about a salesman peddling a little “Ism” to some American groups:
As the video shows, this “Ism” could be socialism, communism, or just collectivism in general. This is one of the better and more straightforward videos explaining the difference between individualism and collectivism, and the supreme dangers of the latter. The main points of the video were:
- It is very hard to define “American.” Whether it is a teenager, a senior citizen, mothers, fathers, blacks, whites, and everything in between, an “American” can best be described at an individual level instead of as a member of a group.
- Someone seeking power, like the hat-wearing politician or the snake oil salesman, will often employ a strategy of lumping people in groups (labor, management, farmers) and prescribing collectivist solutions rather than allowing individual decisions. Such practices are especially effective in a time of duress.
- Visions of “utopia” will come at the cost of freedom, and any attempts to slow or stop utopian programs will be met with charges from interest groups of slowing progress (much like what happened with the bailout and stimulus bills).
Regarding capitalism specifically:
- “Capitalists,” “investors,” and “speculators” are very often regular, hard working people who use their hard earned savings to fund further growth.
- This capitalist-fueled growth provides jobs and prosperity for many new generations of people.
- Like in the case of Doakes Motors in the video, entrepreneurs, capitalists, workers, and consumers are all better off by having the freedom to voluntarily cooperate with each other motivated by their own self-interest.
- Society is better off collectively by allowing individuals to experiment and take on risk to develop new products and services for a profit. Socialism may say they support the masses, but what system is built on the premise that everyone, even a lowly mechanic like Joe Doakes (or Henry Ford, or Michael Dell, or Eli Whitney, or Oprah Winfrey) may be the next innovator who changes the world?
Nowadays, we can see how prophetic a cartoon like this is. As “John Q. Public” warned:
“When anybody preaches disunity, tries to pit one of us against the other, through class warfare, race hatred, or religious intolerance, you know that person seeks to rob us of our freedom and destroy our very lives.”
See anything like that here?
It is true that from 250 up – from 250 – 300 or so, so for that additional amount, you’d go from 36 to 39%, which is what it was under Bill Clinton. And the reason why we’re doing that is because 95% of small businesses make less than 250. So what I want to do is give them a tax cut. I want to give all these folks who are bus drivers, teachers, auto workers who make less, I want to give them a tax cut. And so what we’re doing is, we are saying that folks who make more than 250 that that marginal amount above 250 – they’re gonna be taxed at a 39 instead of a 36% rate.
Step 1: Divide the public (business owners vs. workers like bus drivers, teachers, auto workers). Step 2: Make promises (”tax cuts,” healthcare, “green jobs). Step 3: Go after the villians (entrepreneurs, the wealthy).
