Category Archives: Elections

Economics 101 – The Mess We’re In

Politicians have modified capitalism to suit their largest contributing supporters, thereby enhancing their future elections. This is often referred to as Crony Capitalism 1.

Here are some basics which people are either ill-informed, or refuse to understand because their beliefs override facts.

  • Poor people don’t employ other poor people.
  • People that possess money, or obtain credit, leverage their ideas and talent at great risk, often employ other people.
  • This can enhance the wealth of those business leaders who combine & leverage the labor and skills of others in creative ways.
  • Creditors and investors provide capital to the business, and benefit by the financial gain of the company.
  • Those whose primary object is to decide what’s fair in compensation, for the labor and skill of employees, do so by taking more from those who create and sustain that employment.
  • Eventually, the balance is tilted under government control, such that they and their closest friends & allies, receive the greatest benefits through confiscating the profits from the investors and the company.
  • They (politicians) redistribute profits to appease the employees, and describe that as fair. Creditors & investors withdraw their support.
  • Those who have placed themselves at the greatest risk and have used their imagination to begin or enhance the business, now find their financial rewards diminished.
  • These dwindling profits, and the lack of investors, push the owners into foreclosure and bankruptcy and they join the throng of those who have already staked out their claim for government assistance.
  • In the end, everyone’s standard of living has diminished except the politicians and their cronies.
  • The poor become more poor because business has been destroyed by those who gained their office through a promise of fairness.
  • Larger business, through the support of their friends in government, buy the distressed assets at reduced prices and become more wealthy.

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  1. Crony Capitalism An economy that is nominally free-market, but allows for preferential regulation and other favorable government intervention based on personal relationships. In such a system, the false appearance of “pure” capitalism is publicly maintained to preserve the exclusive influence of well-connected individuals.
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The Bias Construct

Recent public conversations about the political nature of Supreme Court appointments, has surfaced again. No matter who is proposed, if they’ve lived, worked, met, and offered numerous legal opinions, any nominee is going to have opinions on key issues of their day.

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United States Supreme Court Building

Such confusion and double-talk exists in our public-politic, it’s amazing that anyone can be appointed. In a recent public speaking engagement at University of California, Berkeley, U.S. Supreme Court Justice Sonia Sotomayor had this to say.

“I’m saddened to see that many people have lost confidence in judges and believe they are political.”

Sotomayor made the comments while taking questions from law students. The school’s interim law school dean, Melissa Murray, served as Sotomayor’s clerk when the justice was a federal appellate court judge.

Sotomayor said judges try to be fair and impartial and don’t have rigid beliefs they apply to every case. She encouraged people to view judges as “human beings who care deeply about what we’re doing.”

This is an interesting response, considering her words elsewhere.

Sotomayor, spoke at the University of Minnesota on October 19, 2016, commenting that the Supreme Court was designed to have nine justices so it can break ties on difficult cases.

“We try to come to decision-making as best as we can,” she said. “Where we can find a very, very narrow way of deciding a case, we use it.”

Sotomayor compared Scalia’s death to the loss of a family member despite their differences.

“There are things he’s said on the bench where if I had a baseball bat, I might have used it,” she said.

Enter the new nominee Neil Gorsuch. There’s a leading headline in Rueters describing, “ideological balance at stake in confirmation fight” . Of course the usual politicos, Democratic leader Chuck Schumer, and Democrat Dianne Feinstein, are leading the opposition to his appointment along ideological lines. The Rueters article describes some of the opposition rational as to why he shouldn’t be appointed.

It’s a good thing Supreme Court judges are fair and impartial and don’t have rigid beliefs.

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Neil Gorsuch – Supreme Court nominee

Transfer of Symbols of Power

Today marks another passing of the torch in the United States. The 45th president, for the 58th time, the inauguration of a President takes place. It’s a great day for fanfare and celebration, but not for some. To many people, they aren’t happy about this new President. They openly hope the man falls flat on his face. A desire that would be the furthest from their mind if only their person of choice was elected.

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President Donald J. Trump Inauguration 2017

The concern each of us as citizens should have is how much we can do to be of benefit to each other, not how badly we can make things, because our person or party didn’t win. The future requires more cooperation, more finding solutions, and less ways to blame the other person or party.

vp_president_outgoingNo matter what your perspective has been on the Obama Presidency, it should be obvious that he left in a better standing than either George Bush or William Clinton. A high approval rating isn’t  a rubber stamp, but it suggests there was enough political influence to negotiate and make things happen. This isn’t where Donald Trump starts. His approval ratings are significantly lower, even though he’s just been installed.

The Republican party is in a strong position to get things done. It holds majorities in the Senate, House of Representatives, and now the Executive branch. None the less, the Democrats have an opportunity to take the high ground and find ways to work with the Republicans.

Here’s the biggest challenge to make the transfer of power meaningful and beneficial, can we as a people find ways to minimize our differences and work together? I look at a large number of prominent individuals, and there’s certainly a mix of feelings. For some of them, it almost reads like rebels looking for a cause to show how much they matter.

What really should matter, is the alarming way we’ve ignored the 800 pound gorilla. That’s the national debt. There’s been a lot of talk about it, but reversing it, will be painful, no one wants to give up some of that public largess in order to fix this monster.

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We may not be bankrupt yet, but this reality is looming larger than ever. If this debt level isn’t reduced, all of the other priorities we think are important will seem pointless.
According to the Bureau of Labor Statistics, there were 124,248,000 people in the United States with full-time jobs in December. The total federal debt of $19,961,467,137,973 equals approximately $160,658 for each one of those workers.

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President Trump takes office 2017

We’re going to see things change, and I expect there will be a lot of people upset if it affects their special interest, project or cause. I’ve read quite a number of things which distort the positions Trump has officially advocated.

Today’s inaugural speech identified his focus was less on institutional authority and more on the needs of the people. Of course promises from a podium mean very little. We will have to see if they become part of the executive push and legislative authorization.