How to Really Fix America

There are several simple modifications to American policy and to our US Constitution that would quickly set America on a path to prosperity and happiness.  They include:

  1. End America’s role as the world’s policeman  – follow the current Constitution’s prescriptions on the use of our military
  2. Abolish the IRS and replace it with a fee based system of funding for only Constitutionally defined activities the federal government can participate in
  3. Abolish all non-Constitutionally defined government activities with an all encompassing amendment to the US Constitution i.e. disbands cabinet roles such as HHS and Department of Education and governmental agencies such as as the EPA. This action will force the end of federal programs like Medicare, Medicaid, Social Security, etc
  4. Rollback all federal laws for victimless crime
  5. Strengthen federal laws on property rights, citizen on citizen violence, and fraud and coercion
  6. Provide each student under the age of 18 in America with uniform financial stipend that can be used for education and training at the institution of their parents’ choice
  7. Add an amendment to the US Constitution forbidding an income tax or ending the fiscal year without a balanced budget
  8. Stop all federal surveillance unless sanctioned by the terms in the 4th amendment to the US Constitution
  9. Reform immigration to include work permits, simple path to permanent residence,  and add an amendment to the US Constitution forbidding of federal aid to new arrivals
  10. Abolish the Federal Reserve and have legislative control over the current which would be backed by gold and other non-perishable assets

 

The results of these policies would be:

  1. Reduction in cost of national defense and a more popular America throughout the world
  2. Reduction in the cost of collecting funds for the federal government and elimination of corruption caused by the current tax code
  3. Reduction in the cost of government and the ability of citizenry to chose to localize services and the state and municipal level. There would now be a separation of government and business and government and healthcare, etc..
  4. Reduction in incarceration rates and the cost of administering justice with America
  5. Would offer American’s a more equitable and constitutionally sanctioned justice system
  6. Education is critical to a free society so a free parental choice based primary and secondary education would be provided to all students at a baseline level. The funding would come at the federal level from fees collected from selling, renting federal assets
  7. Keeps economic prosperity and assures continued economic justice
  8. Eliminates “Big Brother” for our lives
  9. Stops illegal immigration and assures America access to the world’s best and brightest
  10. Allows a sound money policy and uses market forces to guide interest rates and subsequent investments

 

Statism Does Not Work

This morning’s headlines are further proof that the state is strangling economic growth.  A modern economic system will not grow when there are high rates of taxation (federal, state, and local) coupled with burdensome regulations on business. We have seen this phenomena quite visibly in our nation’s lack of economic growth for the past eight plus years.  Some of the problem with our nation’s blindness or unwillingness to see this is the fourth estate’s coverage of facts but the sin also rests at the foot of those Americans who do not take the time to be educated on what is happening at a macro level with our economy.

U.S. Economy Expands at Slowest Pace in Three Years

This situation bodes the question, when will Americans say enough is enough?

 

 

 

An Outstanding Assessment

A very insightful piece from Simon Black.  I cannot add to this but to say, Mr. Black is spot on with his assessment of Americans today.

https://www.sovereignman.com/trends/new-poll-record-number-of-americans-want-more-government-in-their-lives-21388/?inf_contact_key=bca43013ae3658dd22297fe0e5837999bd3b2e4d6f6b2a81a9955af064c21ad9

April 24, 2017
Sovereign Valley Farm, Chile

In a poll conducted a few days ago by NBC News / Wall Street Journal, a record 57% of Americans responded that they want MORE government in their lives, and that the government should be doing more to solve people’s problems.

That’s the highest percentage since they started asking this question in 1995.

In fact, 57% is nearly double what people responded in the mid-90s.

Furthermore, the number of Americans who feel the opposite, i.e. responded that the government is doing too many things that should be left to private businesses and individuals, fell to a near record-low 39%.  

Bottom line: people want more government.

It’s hard to even know where to begin with this.

First- more government is nearly an impossibility.

As I’ve written several times in the past, the US federal government already spends almost all of its tax revenue on mandatory entitlements like Social Security, and interest on the debt.

They could literally cut nearly everything we think of as government– national parks, Homeland Security, even the IRS– and still not make a dent in paying down the national debt.

According to the US government’s own financial statements, their net operating loss in 2016 was an unbelievable $1.05 TRILLION.

Think about that– they lost more than a trillion dollars in a completely unremarkable year.

They weren’t waging world war, funding a major infrastructure project, or dealing with an economic crisis.

It was just business as usual. And they STILL lost over a trillion dollars.

More government is going to cost even more money that they don’t have… which means even more debt and even more pain in the future.

The usual refrain is to pay for more government programs by raising taxes on the rich, or big corporations, or whoever the evil villain du jour is.

Anyone who thinks this actually works needs to study history.

Simply put, RAISING TAXES DOES NOT RAISE TAX REVENUE.

I wish every Bernie Sanders voter could understand this very simple fact:

Since the end of World War II, US federal government tax revenue as a percentage of GDP has been nearly constant at 17%.

In other words, while the actual dollar amount of tax revenue goes up every year due to inflation and economic expansion, the government’s slice of the total economic pie is 17%.

Yet during the previous eight decades, actual -tax rates- have been all over the board– sometimes rates were higher, sometimes rates were lower.

Back in 1963, for example, the highest marginal tax rate on individuals exceeded an unbelievable 90%.

I’m sure there are plenty of Americans who would love to see the wealthiest citizens paying 90% again.

Yet in 1963, even with rates that high, the total amount of tax revenue that the US government collected was 16.7% of GDP.

In 1988 when the highest tax rate was slashed to just 28% under Ronald Reagan, total tax revenue 17.3% of GDP.
 
It doesn’t matter if tax rates were high or low– the actual tax revenue that the government collects stays constant at around 17% of GDP.

This raises a point that these socialists never seem to understand:

If the government’s slice of the pie never seems to change no matter how high or how low tax rates are, shouldn’t they focus on making the pie bigger?

Duh.

And it seems intuitive that higher taxes obstruct economic growth (i.e. make the pie smaller) because there’s less money in people’s pockets to spend and invest.

Then, of course, we have to touch on the issue of competence.

It’s absurd to want a government that has a nearly interminable track record of overreach, waste, and failure, to be even MORE involved in people’s lives.

We’re talking about the same institution that wastes taxpayer money to study monkeys on treadmills…

… or spent $1 billion to destroy $16 billion worth of perfectly good ammunition…

… or $2 billion to build a website.
 
It’s extraordinary that these people are already in charge of educating our children, regulating our savings, and now our medical care.

It’s even more appalling that given such dismal performance people want more.

As the old saying goes, the classic definition of insanity is trying the same thing over and over again and expecting a different result.

A final point I’ll mention is that it’s concerning to see people in the Land of the Free and Home of the Brave expect the government to solve their problems.

What ever happened to self-reliance? The pioneering spirit? Good ole’ American can-do ingenuity?

In truth there are countless ways for a motivated person to solve problems. Or at least to make forward progress.

For example, to all these kids that have their hands out demanding free university education, I always ask the same questions:

How many books did you read in the last twelve months?

How many FREE online courses from Harvard and MIT did you take?

Are you actually doing anything to help yourself? Or are you just whining on social media about how no one is giving you anything for free?

America was founded as a place where people take responsibility for themselves.

But this now seems to be an outdated, minority view.

The Land of the Free is truly becoming the Land of Getting Free Stuff.

 

Until tomorrow,

Simon Black

Founder, SovereignMan.com

Basic economic laws should not be thwarted

In the United States of America, the state continues to deploy failed policies that violate basic economic principles to the detriment of the entire society it seeks to control.   This failure can be seen in America’s Welfare State and progressive income tax program. The former subsidizes individual actions and life styles that can contribute to poverty and the later discourages income and wealth generation. Simply put, basic praxeology shows us when you subsidize something you will get more of it. Tax and regulate something you get less of it.

Since the amalgamation of the Revenue Act of 1916 and FDR’s New Deal, (in which the state used taxation, targeted subsidization, and regulation in an attempt to alleviate and or mitigate its definition of poverty among its citizens), the state began to extremely violate the aforementioned basic principles of human behavior.

In FDR’s “First New Deal” (1933–34), many programs were instituted using state subsidies to pay people who did not work and create new regulations for the banking and industrial sector which increased their moral hazard in an attempt to combat the impact and causes of the Great Depression.

FDR’s “Second New Deal” (1935–38) went further and fully institutionalized state involvement in the nation’s personal behavior in an attempt to address the effects of the ongoing economic crisis.  Programs such as Social Security and the Fair Labor Standards Act would change America forever.

The state, in its infinite wisdom, seeing less than satisfactory results from FDR’s New Deal, thirty years later further increased its involvement in Americans’ personal lives with new programs, subsidies, and taxes during LBJ’s Great Society.

Our aim is not only to relieve the symptom of poverty, but to cure it and, above all, to prevent it. No single piece of legislation, however, is going to suffice.”
– President Lyndon Johnson, 1964 State of the Union Address

Recently, according to the 2014 House Budget Committee Report, The War on Poverty: 50 Years Later the state’s return on investment has been less than satisfactory.  Below are some conclusions from the report showing failure of the state to eliminate poverty by not understanding basic human behavior:

The War on Poverty at a Glance
Despite trillions of dollars in spending, poverty is widespread:
• In 1965, the poverty rate was 17.3 percent. In 2012, it was 15 percent.
• Over the past three years, “deep poverty” has reached its highest level on record.
• About 21.8 percent of children live below the poverty line.1
In can be no surprise the state has failed to eliminate poverty if one understands the basics tenets of human behavior and the fundamental principles of economics.   The state’s policy violates them. Government programs targeted at poverty reduction/elimination encourage more poverty by encouraging a person to continue their current situation of being in poverty — receive payments and subsidies for having lower income, receive payments and subsidies for not working, receive payments and subsidies for having more dependents, receive payments and subsides for not completing high school, receive payments and subsides for not living a healthy lifestyle, etcetera.
The state also discourages work and thus wealth generation with its onerous job killing regulations which make it more costly for employers and entrepreneurs to create jobs and thus new wealth.
Additionally, the progressive tax system reduces the incentive to generate new wealth as its marginal income tax rates and capital gains taxes punish those who generate more earned income and investment generated wealth.
The state could easily rectify the current situation by eliminating all subsidies to individuals and corporations and stop taxing income and wealth.
1. “War on Poverty.” Http://budget.house.gov/uploadedfiles/war_on_poverty.pdf. United States House of Representatives , 3 Mar. 2014. Web. 8 Apr. 2017.

Wake up America

Americans need to wake up and realize that our rights are being taken away by a corrupt government.  President Obama assured us years back that his administration would respect the US Constitution but today we find out that the CIA has tools that violate our privacy and we would never know it. (See WikiLeaks Vault 7)

Senator Obama promised in a Woodrow Wilson International Center, Council on Foreign Relations speech on August 1, 2007 that:

His administration would not “spy on citizens who are not suspected of a crime, ”

“I will provide our intelligence and law enforcement agencies with the tools they need to track and take out the terrorists without undermining our Constitution and our freedom.

“That means no more illegal wiretapping of American citizens. No more national security letters to spy on citizens who are not suspected of a crime. No more tracking citizens who do nothing more than protest a misguided war. No more ignoring the law when it is inconvenient. That is not who we are.

Obama also declared that “the law is not subject to the whims of stubborn rulers”:

“We will again set an example for the world that the law is not subject to the whims of stubborn rulers, and that justice is not arbitrary.”1

We Americans must all rise up and tell our government to stop and then only elect candidates who respect the law.

  1. Parks, Bob. “Obama’s 2007 Promise: ‘No More Illegal Wiretapping of American Citizens'” CNS News. N.p., 10 June 2013. Web. 07 Mar. 2017.

State corruption

Just the last few hours of corruption reports. When will America realize, the state is the enemy of their freedom and prosperity?

Thanks to the Drudge Report, ZeroHedge and, ibankcoin for this information

Is Obama in cahoots with the Russians?

http://www.zerohedge.com/news/2017-03-03/meet-russian-ambassador-center-sessions-scandal

Pelosi lies again….

http://www.politico.com/story/2017/03/nancy-pelosi-sergey-kislyak-meeting-235653

Schumer and the Russians, are all of our state actors speaking with them?

http://www.thegatewaypundit.com/2017/03/flashback-chuck-schumer-meets-vlad-putin-new-york-city/

Was there ever and consideration of a potential conflict of interest at CNN?

http://nypost.com/2017/01/19/daughter-of-close-obama-adviser-will-cover-doj-for-cnn/

Why are we hearing of this corrupt tactic again, isn’t this the way the Democrats pushed Obamacare through in the first place?

https://www.bloomberg.com/politics/articles/2017-03-02/-secret-obamacare-plan-leads-congress-members-on-treasure-hunt

Isn’t Tesla a recipient of billions of US taxpayer dollars?

https://electrek.co/2017/03/02/tesla-autopilot-crash-video-how-note-to-use/

More Russian meetings by Democrats, is this a problem?

http://www.zerohedge.com/news/2017-03-02/democrat-claire-mccaskill-caught-lying-about-meeting-russian-ambassador

More money coming to the elitist state lovers called the ‘one percent’ via the Federal Reserve?

http://www.zerohedge.com/news/2017-03-03/fed-preparing-1-trillion-qe-next-recession-deutsche

Are these corrupt corporatists?

http://www.zerohedge.com/news/2017-03-03/%E2%80%9Ci%E2%80%99m-sorry-we-had-experience-today%E2%80%9D-caterpillar-ceo-apologizes-over-shock-raid

Does anyone else just think this is weird?

http://www.zerohedge.com/news/2017-03-02/valerie-jarrett-moves-obamas-dc-lead-fight-strategy-topple-trump

ICE is operating fairly?

http://ibankcoin.com/zeropointnow/2017/03/02/22-year-old-argentinian-immigrant-arrested-by-ice-after-giving-anti-trump-speech/

Should the state monopoly in education consider change?

Education — especially in a world where academic knowledge, strong skills, and technical knowhow are required to obtain a ‘good paying’ job — is too important to have a near monopoly by the state given their dismal track record in progressing our students’ knowledge and capabilities.  While education’s value goes well beyond career training, obtaining a job its subsequent paycheck is critical to a person’s survival and their economic and social mobility in twenty-first century America. Obtaining superior education and training are paramount in the aforementioned endeavor.

According to a study co-authored by National Research Center for Career and Technical Education (NRCCTE) and the Georgetown University Center on Education and the Workforce  healthcare, community service, and STEM are projected to be the fastest growing career clusters in the next several years.1  For the most part, securing one of these careers will require having experienced very strong classroom instruction leading to real measurable learning of the fundamentals of reading, writing, and mathematics. Considering the sophisticated American economy that is being projected, can we expect students to become employed in these highly skilled jobs with the same quality of education and knowledge students of the nineteen-seventies possessed?

In terms of the states’ contribution to our students’ knowledge and skills, one can look at The National Assessment of Educational Progress (NAEP) which is a seemingly well accepted nationally representative assessment of how our state dominated educational system is performing. The results show their performance is not improving. Historical data highlights the fact American high school student achievement has stagnated for forty years the essential subjects of reading and math.2

The charts below show flat reading and math scores for America’s high school students going back to the nineteen-seventies.

Overall, the states’ educational system is not providing what students require to succeed in the twenty-first century when measured by the abysmal rates of obtaining career qualifying credentials such as an ‘earned’ high school diploma, apprenticeship completion, or a ‘legitimate’ college degree within a field meeting the needs of future employers.

Faced with stagnant performance for nearly forty years, most other fields outside of the state dominated educational system would look at themselves and likely embrace changes to their systems. For the future of our youth and nation, should not the state dominated educational system do the same?

 

neap-reading
Flat HS Reading Scores
neap-math
Flat HS Math Scores

Sources

 

  1. Carnevalle, Anthony, Nicole Smith, and Jeff Strohl. “Recovery: Job Growth and Education Requirements Through 2020.” CEW Georgetown. Georgetown University, June 2013. Web. 25 Feb. 2017.       
  2. “Summary of Major Findings.” NAEP – 2012 Long-Term Trend: Summary of Major Findings. US Department of Education, 2012. Web. 25 Feb. 2017.