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

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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.

Cowards

Why is it the cowardly ruling elite or even the American people refuse to discuss the failing Ponzi schemes funding our entitlement programs?  Could it be they and the vast majority of American people believe the funding will magically appear if they do not think about it; is it a ‘bad’ political move to acknowledge the abject failure of the state to uninformed voters; or is something else?

Looking at the systemic under funding/over promising of Americas’ sacrosanct social programs will certainly cause great distress to all but the most seriously financially illiterate but yet, this fast approaching catastrophe is all but ignored in our political discourse.

Referencing www.usdebtclock.org clearly shows over $104 trillion of under funding of the lefts’ Social Security and Medicare programs.  I have yet to hear a cogent argument that this data is incorrect or that there is a real solution to this problem.

All Americans whether, statists or liberty seeking patriots should demand a honest debate of this problem before it is too late.

 

 

When will the American voter wake up?

The reality is, the average  American’s economic well being has been dropping for the past 7 years and still, I hear those who want more of the same despite the facts clearly showing failure of this administration. The numbers of informed voters are not yet large enough to make a difference.

One cause of our economic malaise is our rapidly growing debt. By any measure, it is threatening to overcome us and will one day unless it is reduced. It is now time American voters look to a new way, limited government which will in turn lead to less debt and more economic activity taking place in the more efficient private sector instead of the highly inefficient and wasteful public sector.

However, there is some cause for hope. In my latest readings on the economy, I am starting to see facts being clearly communicated which show our leaders’ being called to account for their economic malfeasance.

Please voter, learn the facts and wake up!