Posts Tagged ‘working man’

Shysters and Liars

Thursday, May 2nd, 2013

Dear Friends,

It seems to me, when a millionaire stands in front of me and claims he is going to hurt the rich and help me, I know I am being lied to. Carneades said, people are like animals, each striving for his or her own best interests, and so true justice cannot exist, because for a person to be truly just they must damage their own interests. In the case of a rich man telling me how he is going to damage the rich to help me, he must be lying, because to do that he would have to do damage to his own self interests, and no man, rich or poor would do that. This is a lesson to all those who tend to believe it when a millionaire claims he is going to tax the rich and help the poor. The rich politician only seeks to appear that he is taxing the rich when in fact his goal is to protect the rich. If a majority of us don’t learn this lesson we will continually be disappointed at the economic results of our votes.

Obama is a case in point, he claims to be against the rich and for the poor. But his latest poll numbers show that he is loved, by the very rich he is so intent on taxing to death, and not liked so much by those he claims he is trying to help. The higher the income the higher Obama’s poll numbers. If the results of his tax increases were so damaging to the rich, why do they love him so, and, if his policies are so geared to helping the poor, why do we like him less? A brief look at the results of Obama’s policies will make the point.

The uber rich are doing very well indeed under the Obama regime. Despite Warren Buffet’s claim that his tax rate is lower than his secretary’s, his taxes have not gone up, but his secretary’s have. The Obama administration handed the billionaire investor a tidy windfall when Obama vetoed the Keystone oil pipeline. The oil didn’t go unused it is traveling to Texas in Warren Buffet’s trains. Increasing the carbon footprint of the oil, increasing the danger of a major spill if a train were to derail, driving up the cost of that oil and eliminating the thousands of jobs that would have been created if the pipeline had gone through. In this one case, we see clearly that despite the rhetoric, Obama damaged the interests of the little guy and gave a hand up to the uber rich guy.

The money printing of the Federal reserve is another manifestation of Obama’s policies helping the uber rich and hurting the little guy. The 40 billion dollars a month the FED is printing to buy mortgage loans, to drive down the cost of mortgages, could make 40 thousand people millionaires every month! Add to that the 45 billion Bernanke is printing to buy treasuries and the total would be 85 thousand people made millionaires a month! Think of how this would stimulate the economy! If the FED did a random drawing of 85 thousand people a month, and cut them a check for a million dollars each, the economy would boom overnight. But instead, the FED is buying treasuries and mortgage loans… lining the pockets of the rich with the printed money.

Obama care’s tsunami of taxes and regulation will wash away any economic gain from all the money printing. This is the dirty little secret that economists don’t tell you. Obama care will destroy the American economy and everyone in business knows it. The regulations alone will drive up the cost of labor so much that many businesses will have to lay people off. The confiscatory taxes will drive many out of business altogether. The reason so many firms have been cutting labor and ratcheting up productivity, is that they know the ones who have the lowest labor cost as a percentage of the total cost of production, will be the only ones to survive. Those that have not cut to the bone will be pulled out to sea and drowned by Obama’s tsunami.

Obama’s claims to help the working man have come with policies that damage working people’s interests and helped the uber rich. Money printing to “stimulate” the economy into creating jobs, has only made the rich richer, and the tsunami of Obama care will swamp our economy, eliminating jobs just when we need them most. If we want to live in liberty and freedom it is imperative we learn to recognize shysters when we see them. Clearly we have not, but I am hopeful that the Obama administration has gone a long way, to teaching this generation to recognize one when they see one. So, now you know too, that when a rich person stands in front of you and claims he or she is going to hurt the rich and help you… you are being lied to.

Sincerely

John Pepin

Demand for Labor

Sunday, December 20th, 2009

Dear Friends,

It seems to me that the best thing government can do for the working man is to make the demand for labor greater than the ability of the market to deliver. To do so resets the value of labor and allows the working man the ability to raise his lot.

The swamp of humanity that Malthus supposed has not come to fruition and can be tossed out. Population growth is slowed to the point in industrialized countries that the average age is going up fast. Problems of how the few youth will pay for the services of the many old are manifesting.

Market forces can never be ignored. When ever demand exceeds supply the aggregate price will rise. Labor is no exception. So whenever demand for labor exceeds the supply of labor the price goes up. But market forces are powerful. As the price of any commodity goes up more of the commodity is produced. So as the price of labor increases the supply will increase. By bringing in people who had little reason to work. (People who formerly had taken advantage of government largess). Most of the time the value of their labor is less than the value of government services they receive. Only when the value of their labor gets to the point where it makes economic sense to move into the labor force will people that receive government services do so.

As more people move into the workforce the ranks of the poor will necessarily go down. Poverty will necessarily become a thing of the past. But, more importantly, as almost everyone of working age in a society work, (add their productive labor to the aggregate), the wealth of all of that society grows… inevitably. The more people that work in a society, the more wealth there is in that society, the stronger the “foundation” of that society. The less people that work in a society the less wealth there is in that society.

How can government help drive up demand for labor in it’s territorial jurisdiction? By lowering friction to business… Regulation, taxes, licenses, and graft are friction to business. Another more pernicious source of friction are parasitic lawyers and legal system that creates chaos to enrich itself. Export and import tariffs and regulations continue to drive down the demand for labor in a country. Government largess is another insidious incentive that keeps the demand for labor low by creating a permanent underclass that has only the buying power, government, (societies roof), suffers it to have.

The roof cannot long support the foundation.

But by far the biggest drag on the demand for labor in a country is a lack of justice. Nothing else is as corrosive of the wealth of a nation. In a country that has no real justice, only the appearance of justice, poverty is always rampant. Starving people litter the streets and countryside.

Look at modern Kenya. There is a drought there. Starvation is gearing up to take the lives of thousands of people, and reset the epigenetics of the next two or three generations. Now what is the effective cause of the starvation in Kenya? Is it the drought or is there some root cause that is only made apparent by the drought?

The last elections in Kenya were marred by violence. Many were killed and the turmoil is only just under the surface. Justice is not to be found. People cannot be safe in their possessions. I submit, the lack of justice is the root cause, of the imminent starvation in Kenya and the drought is an aggravating factor.

Can you think of one country that has, or had, no justice and is/was wealthy? Not one exists in the history of man. Many were wealthy and lost their wealth when they became corrupt but not one has risen in corruption to wealth. The two are like matter and anti matter. They cannot exist together. Where there is injustice there cannot be general wealth. But where there is wealth, injustice will eat from the inside, that wealth, as surely as a nematode in a caterpillar.

Injustice lowers the demand for labor because of many factors one of which is the incentives that are set up. No one gets ahead by his or her own labor, they get ahead by stealing the possessions and labor (slavery), of others. Therefore, as possessions are used up and not replaced by the labor of the many, necessarily, the aggregate wealth of the county goes down. And, inevitably, as the wealth of a country goes down the demand for labor goes down as well… a nice feedback loop.