Archive for May, 2009

Here is a nice letter responding to the Mr. Obama’s threats to the Chrysler bondholders that refuse to let the UAW steal their assets.  This is just one more example of the government whimsically favoring some individuals more than others.

From the WSJ:

Liberate America’s Other Economy

June 12, 1990

In 1984, Mario Cuomo of New York electrified the Democratic Convention with his tale of America as two cities, one rich and one poor, permanently divided into two classes. He talked about the rich growing richer and the poor becoming poorer, with the conclusion that class conflict, if not warfare, was the only result, and redistribution of wealth the solution.

With all due respect to Gov. Cuomo, he got it wrong. America is not divided immutably into two static classes. But it is separated or divided into two economies. One economy — our mainstream economy — is democratic and capitalist, market-oriented and entrepreneurial. It offers incentives for working families in labor and management. This mainstream economy rewards work, investment, saving and productivity. Incentives abound for productive economic and social behavior.

It was this economy, triggered by President Reagan’s supply-side revolution of tax cuts in 1981 that generated 21.5 million new jobs, more than four million new businesses, relatively low inflation and higher standards of living for most people. This economy has created more jobs in the past decade than all of Europe, Canada and Japan combined. And according to the U.S. Treasury, federal income taxes paid by the top 1% of taxpayers has surged by more than 80% to $92 billion in 1987 from $51 billion in 1981.

There is another economy — a second economy that is similar in respects to the East European or Third World socialist economies. It functions in a fashion opposite to the mainstream capitalist economy. It predominates in the pockets of poverty throughout urban and rural America. This economy has barriers to productive human and social activity and a virtual absence of economic incentives and rewards. It denies black, Hispanic and other minority men and women entry into the mainstream. This economy works almost as effectively as did hiring notices 50 years ago that read “No Blacks — or Hispanics or Irish or whatever — Need Apply.”

The irony is that the second economy was born of desire to help the poor, alleviate suffering, and provide a basic social safety net. The results were a counterproductive economy. Instead of independence, the second economy led to dependence. In an effort to minimize economic pain, it maximized welfare bureaucracy and social costs. 

- Jack Kemp

Please look here for the full article.

Courtesy of Freelance Photography

I just had to point out this article.  It talks about violent rallies that occurred yesterday in various countries (those mentioned were all in Europe).  This is so perverse that it needs to be called out.  Those rallying were all anti-capitalist groups; the Greek trade union GSEE, the French union CFE-CGC, the French Socialist Party.  They were rioting, demanding the government do something to get them jobs.  Please remember that all of these countries practice socialism, not capitalism. 

They all have government meddling in their daily lives.  The rioting yesterday shows the depth of their belief in socialism as they were out demanding that the government GIVE them jobs or FIND a solution to what ails them. 

It’s funny to think back 2 weeks to the United States Tea Party rallies where hundreds of thousands came out to show their frustration WITH government involvement.  Let that soak in for a few minutes.  ( One hippopotamus, two hippopotamus, three hippopotamus…).  People in socialistic countries demonstrate to force their governments to find solutions to problems.  People in the United States (an almost capitalistic country, at least in the past) came out to demonstrate for the government to lessen its impact on the Individual. 

I find that poetic.  To state the obvious, the United States has many, many problems that need to be solved.  But what was evident from the Tea Parties were Individuals wanting to control the process to find solutions.  In socialist countries, they rely on groups to demonstrate for a new tit to suck.