National Budget Vs. Personal Budget

• U.S. Tax revenue: $2,170,000,000,000 • Fed budget: $3,820,000,000,000 • New debt: $ 1,650,000,000,000 • National debt: $14,271,000,000,000 • Recent budget cut: $ 38,500,000,000

Got it?

OK, now let’s remove 8 zeros and pretend it’s a household budget:

• Annual family income: $21,700 • Money family spent: $38,200 • New debt on credit card: $16,500 • Outstanding balance on credit card: $142,710 • Total budget cuts: $385

I’ve seen the above posted on a number of sites recently. The oldest source I saw for it was here. I think it’s valid to think of the budget in these terms. Sure, there are differences, such as our government’s ability to legally launder money, but the basic principles of home finance do relate, and taking eight zeroes off helps make things imaginable. Considering that there are approximately 300,000,000 Americans, around half of whom don’t pay income taxes, it isn’t even too far off for figuring your own percentage of the debt. Gimmicks aren’t going to change this chart. You can tax the people to give out loans (more debt) to small businesses, but that is mostly zero-sum. You can tax the people to pay for unemployment to encourage the unemployed to spend money to stimulate demand for products and thus create jobs, but that is like buying your employer’s product on your credit card in order to keep them paying your paycheck; It gets you nowhere or worse. You can tax the rich dry and barely make a dent in that number. Just like in your personal finance, if you want to gain wealth, you need to provide something that someone else needs. If we aren’t selling more to foreign nations than we are buying, we are losing. This isn’t so much a supply or demand problem as it is a relative value problem. If we are going to be on the losing side of this equation, we need to be printing money rather than borrowing it. This may not be fair to the savers, but they will fail right along with the rest of us on the current course. Printing money eventually devalues it. A devalued currency will make imports more expensive and exports more affordable, putting us to our rightful place in the market again. I would also support an eye-for-an-eye tariff policy to prevent socialist nations from taking advantage of us. Until one or both of these things are instituted, our economy will continue to decline. Even with those changes, we also need to reduce our spending on the military, foreign aid, micromanaging regulations, incarceration, social programs for non-citizens, and benefits for public employees.

Stereotypes, Taboo, and Equality by Force

If philosophy is questions that may never be answered, and religion is answers that may never be questioned, then politics is asking the wrong questions in order to avoid unwanted answers.

There are times when truth is the bane of politics, often justifiably so. It is one of the most central tenets of our nation that everyone is treated equally under the law.

Or so we say.

If a man and a woman go out for a walk topless, only one of them will be arrested for indecent exposure.

When they turn 18, only one of them has to register for the draft.

Sometimes it is somewhat less certain. If a couple are getting divorced, which one is going to get the kids and which one is going to pay the child support? We all know the answer, most of the time.

In Arizona, if you look Mexican they will ask you for your papers.

Age discrimination is so rampant in our legal system that we wouldn’t even know how to remove it. We consider our kids to be old enough to go overseas and kill and be killed in war years before we consider them to be responsible enough to drink a beer.

And then you have groups who claim to be crusading against discrimination, arguing to mandate it in their favor in order to balance the scales. They argue that high crime rates and low test scores among their constituents are the result of  poverty and tests written by the majority for the majority. They suggest that the solution is affirmative action. Grants for minorities, hiring quotas, and legal protections against discrimination based on their minority status.

I would argue that these things cause the very things they claim to prevent. You can’t just give an opportunity to one person without taking it away from another. Denying a job to the most qualified candidate in order to give it to a lower scoring minority breeds dissension and lowers productivity. It foments racist and sexist thoughts in those who are turned down for the job they are best at.

It also creates a perception of incompetence. Would you want to be a minority who had earned their position through skill and hard work, only to have everyone figure you were given the job to fill a quota? I’m not saying such policy should never be made, but that we need to be honest about all of the effects it will have, rather than optimistic cherry picking. If the state of repression is significantly more serious than the ill will generated, such as slavery or segregated schools, then so be it, but there comes a time when the only time you approach equality is when you take the training wheels off.

I say approach equality rather than achieve equality because I don’t believe we will ever get there. There is no divine entity making sure that everyone’s weaknesses are perfectly balanced out by some hidden strength. Some people are just bad people. Some are weak, some are strong. Science tells us that many of these traits are passed on genetically.

So what do we do when science tells us that people with short index fingers are more prone to violence? What happens when a racial profile accurately predicts aptitude? When a gene predicts that you will cheat on your spouse?

Most of us don’t even want to admit that it might be possible. Pretending that such data doesn’t exist is just hiding our head in the sand. It’s out there. People read it. People act on it. The Amish riding around in buggys doesn’t prevent the existence of military satellites.

If we are to have equal treatment under the law, our only hope is to studiously prevent our government from collecting, interpreting, and acting on details of our personal data. This means in order to prevent such profiling, we also need to be rid of the quotas.

These kinds of issues are things I occasionally ponder. If you are interested in getting a much deeper understanding of the news and issues surrounding the battle between reality and social expediency, there is a blogger who seems to devote his every waking hour to the subject, and I’m sure gets a daily earful of people calling him a racist for doing so. Whether he is or not, he’ll make you think, and alert you to news you just won’t hear elsewhere, for example:

The Cherokee Nation voted to amend their constitution to remove the citizenship of descendants of slaves once owned by its members. More casino money for the rest of the tribe?

Asians pulling away in SAT scores.

Race and DNA based medicine.

Study shows other apes don’t have shared goals.

How Microsoft reduced its  taxation from 25% to 6% in one year.

Dept. of Justice legal loophole to discriminate against Americans.

For Everyone Else, There’s WikiLeaks

I haven’t spoken much about WikiLeaks, but I’m glad that such organizations exist to shine some sunlight on the back-room dealing of those in power. It’s a sad day when the truth is a crime.

Our secrets are a weakness, not our power. Who can be blackmailed, if they have no secrets? Who embezzles money in the light of day? If torture is humane and effective, then why don’t we do it publicly? What investor invests in a market they know is overvalued?

If the state of our Union is strong, don’t tell us it is strong, show us it is strong. Open the books. Knowing that the data they see is the truth will brink confidence in our Dollar and our nation, not chase it away. Besides, if you don’t open the books, Assange will do it for you.

California Affiliate Tax

California’s latest budget deal continues their now-familiar trend of chasing small business out of the state. In a desperate and unconstitutional powergrab, they are saying that any business that is even affiliated with anyone in California has to pay sales tax on everything sent to customers in the state.

I’m most often complaining about Congress overstepping their bounds in controlling the states, but this is a rare case (Like Arizona’s recent immigration laws) where the opposite is true. Interstate commerce is squarely under the jurisdiction of Congress. Let’s say that a product is manufactured in Texas, sent to Colorado to an Amazon distributor, and then shipped to a customer in California; what’s to stop Texas from saying they can charge sales tax on the item because they made it? Or Colorado to charge it because they are where the sale was shipped from, or every state in between because it passed on through? The Federal government is there primarily for two purposes, foreign policy, and making sure states don’t enact anti-competitive laws that interfere with the commerce between the states, thus, states were only allowed to regulate transactions from those companies which they have jurisdiction over because of a physical presence in the state.

California is now claiming that I, along with ten thousand others are ‘sister companies’ of Amazon, because we are paid to advertise for them. I’m nobody’s ‘sister company’. I have no Obligations to Amazon, they don’t tell me what to do, we don’t have any claim over each other’s assets, I just post a link to Amazon on my page, and Amazon reimburses me for doing so when paying customers arrive there through my sites. I’m no more connected with Amazon than television networks who advertise for them, UPS who carries their products, or Visa, who handles their transactions.

Living in an extremely liberal town, I hear a lot of people cheering this bill as somehow sticking it to the evil corporations and finally making them pay their fair share, but that isn’t what is going to happen out of this. Amazon has already announced that they will end their business dealings with everyone in California, which means not only are ten thousand more Californians now very suddenly out of work, but California won’t see a cent of it, since the companies won’t actually be taxed after cutting ties, and California will be out the revenue from those people and quite possibly paying to add them to its welfare rolls. Also, it isn’t legally Amazon’s responsibility to pay sales tax on your purchases, it’s yours, so if you aren’t paying taxes on your online purchases, then point the finger at yourself first.

I wish I’d seen that this ship was sinking before I bought a home here. If it were any easier to leave, I would.

Keynesian Fail

This was our Nobel for Economics winner of 2008. More proof that our economic situation wan’t an accident, wasn’t the result of insufficient regulation, but was engineered by those very regulators.

“To fight the recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley or Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.” -Paul Krugman, 2002

(via FalkenBlog)

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