Thursday, December 23, 2010

Demand

From Wikipedia :

In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay. The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time [my emphasis].

The ability to pay is our current problem with demand. Prices generally are increasing due to inflation and increased energy prices, which are a de facto tax as a result of direct and indirect government intrusion in the market. We have a two-year extension of our current tax rates, which will be increased if the current administration has its way. We have an official unemployment rate which has been hovering just under ten percent for the past year and a half, despite the "best" efforts of the statists. Banks do not want to make loans. In other words, the financial future is clouded and uncertain in the best of best-case scenarios. What, then, happens to demand?

Negative expectations about future income may discourage present consumption.

Duh.

Robert Hurt, R-VA(5) Elect: Douchey McBag

As I have noted before, Virginia's 5th district Congressman-elect is an establishment RINO douchebag. To wit: Hurt's recent e-mail to supporters. Does he want to repeal the mother of all welfare abortions which is ObamaCare? Reduce taxes? Reduce government intrusion into our lives generally? No. His primary objective, he states, is constituent services.

Hurt will assume a seat on the Financial Services committee, where he:
"...look[s] forward to representing the interests of Central and Southside Virginians on the Committee. The Committee will be addressing issues that will impact tax payers, businesses, financial institutions, and job creation in the 5th District. I am committed to supporting policies that will increase access to capital for small business and individuals, reduce the regulatory burden on Main Street banks, protect taxpayers by reforming Fannie Mae and Freddie Mac, and lead to aggressive oversight of the Regulatory Reform bill. "


OK. Item-by-item:

  • The interests of one's constituents is not what the committee seat is intended to serve.
  • Government can only "create jobs" indirectly by getting out of the way.
  • Access to capital via loans or credits is not the problem. Access to one's own capital, i.e. earnings, is the problem.
  • Regulatory burden should be reduced for all businesses, not just for "Main Street" banks.
  • Fannie Mae and Freddie Mac should be eliminated, not "reformed."
  • One wonders what Hurt means by "aggressive oversight."

    • Although Hurt calls for "limited" government, his policies do not advocate this view. I will note again that Hurt did not mention the Constitution ONE TIME during the campaign except to express his support of Amendment II in a "sportsman's right" fashion.

      He will prove to be a poor choice.

      Wednesday, December 08, 2010

      Tuesday, December 07, 2010

      Fair Trade?

      A 2-year extension of the current tax rates for 13 more months of unemployment compensation?

      If you build it, they will come.

      Forget about the day of infamy. This is the Age of Infamy.

      Monday, December 06, 2010

      Tax Cuts for the Rich

      Who are the rich? Anyone who is part of the 53% of Americans actually PAYING taxes. So if you are not a parasite, you are going to be bled a little bit more to feed the parasites. You are just the host organism, and you have no say.

      According to AP Radio News this morning, even lower-income Americans will see their taxes go up, including those who "don't owe any money to the federal government." Uh-huh.

      Here is what the Wall Street Journal reports about the real-world implications of allowing the Bush Tax Cuts to expire:
      'It is not a sensible way to run a country to have this magnitude of tax issues left to annual uncertainty," said Treasury Secretary Tim Geithner earlier this month, and he's certainly right about that. But at the current moment the single biggest obstacle to more certainty is his boss, President Obama, who still refuses to compromise on the tax increase set to whack the economy in a mere 30 days.

      ...

      Capital gains and dividend tax rates will climb to 20% and 39.6%, respectively, from 15%, and the top two income tax rates will climb to 38% and 41% (including deduction phaseouts), from 33% and 35%. The typical family with an income between $40,000 and $75,000 a year will pay as much as $2,000 more in 2011, as the 10% tax rate bracket and the $1,000 per child tax credit vanish.

      This could have been resolved months ago, except that the White House and Congressional Democrats insist that some taxes must be raised. [my emphasis]


      What happened to my taxes not going up a "single dime," as the President so famously stated, and those on the left so shamelessly (or perhaps ignorantly) defended? Taxes would only be increased on the rich, we were told. They can afford it because they have more. Sound familiar? Are you rich if you are a teacher and your spouse works part time? Are you rich if your spouse is a nurse, and you are a full time homemaker? Are you rich if you are a heavy equipment operator, and your spouse works for an auto insurance company? Are you rich if you are a retired widow living on your deceased husband's gutted pension? Are you rich if you are a retired small business owner living off of what you were able to save after your bookkeeper embezzled tens of thousands of dollars? Are you rich if you work third shift driving a forklift, and your spouse is a church secretary?

      A flagging economy, massive unemployment, and now a tax increase. Remember: YOU VOTED FOR THIS. You knew what you were doing, how wrong it was, and what would be the result. You chose to ignore the evidence, and suspend the rational thinking of your own brain. In short,

      Brother, you asked for it!