Category Archives: Economy

Economic Issues, Taxes, Capitalism

The Obama Economic Plan Is Working

As even the New York Times can see, the income levels of Americans has fallen dramatically. President Obama has caused it to happen.


The Typical Household, Now Worth a Third Less

Economic inequality in the United States has been receiving a lot of attention. But it’s not merely an issue of the rich getting richer. The typical American household has been getting poorer, too.

The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.”

As the Times notes near the end of the article,

The reasons for these declines are complex and controversial, but one point seems clear: When only a few people are winning and more than half the population is losing, surely something is amiss.”

That means something is wrong but they don’t want to get into it.


Illinois’ Credit Rating Now Worst In The Nation

death spiral

Those darn Democrats are doing it again.

Gotta hand it to Second City Cop fir the line of the day:

No end in sight:

The outlook for the state of Illinois’ credit rating has turned negative, Standard & Poor’s Ratings Services warned today in a report.

The credit rating agency affirmed the state’s worst-in-the-nation A- bond rating, but its outlook, which had been raised to “developing” earlier this year after enactment of pension reforms, went back to negative.

That means that the state’s credit rating could be downgraded within the next two years unless its finances improve, S and P said. A lower credit rating translates into higher borrowing costs.”

Perhaps we should amend that to say “no end in sight that doesn’t mention the word ‘Detroit’. “

WGNTV says:

A warning came Saturday morning from state treasurer Dan Rutherford (R) IL State Treasurer. The Standard and Poor’s downgrade from A to A-minus puts Illinois last on the list– and means a higher cost to borrow money.

On Wednesday, the state will issue $500 million in new bonds to pay for roads and other transportation projects. Rutherford says the credit downgrade will cost taxpayers an additional $95 million in interest.”


Beretta Pulls Out of Maryland


Maryland is losing those jobs just like Colorado lost jobs when Magpul moved out. Beretta, though, is a much bigger deal. “Beretta U.S.A. anticipates that the Gallatin, Tennessee facility will involve $45 million of investment in building and equipment and the employment of around 300 employees during the next five years.”

Stupid politicians.

The day after gun control supporters [falsely] claimed that the passage of an “assault weapon” and “high-capacity magazine” ban and increased concealed carry requirements reduced firearms-related crime in Maryland, Italian gunmaker Beretta announced that it’s moving all of its manufacturing out of Maryland and into Tennessee. GM Jeff Cooper left no doubt that The Free State’s post-Newtown push for civilian disarmament (a.k.a., Bill SB281) triggered the move . . .

During the legislative session in Maryland that resulted in passage of the Firearm Safety Act of 2013, the version of the statute that passed the Maryland Senate would have prohibited Beretta U.S.A. from being able to manufacture, store or even import into the State products that we sell to customers throughout the United States and around the world. While we were able in the Maryland House of Delegates to reverse some of those obstructive provisions the possibility that such restrictions might be reinstated in the future leaves us very worried about the wisdom of maintaining a firearm manufacturing factory in the State.”

More at TTAG


Communist BRICS Ally To Sink US Dollar


From Trevor Loudon:

Four Marxist ruled states (Brazil, Russia, China and South Africa) together with heavily communist infiltrated India, are working together on a plan which could destroy the US dollar and sink the economy.

From the British communist paper Morning Star:”

Maduro: Brics summit will change the world order

Decisions taken at the Brazil, Russia, India, China and South Africa (Brics) summit will change the course of the 21st century, Venezuelan President Nicolas Maduro said July 16.

“Brics have made very important decisions to change the political and economic world order,” he told his weekly TV programme.

The bloc has “decided to create a development bank with $100 billion (£58bn) as starting capital and a commercial and financial system among its members to use local currencies instead of U.S. dollars.”

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South Carolina Is Gun Friendly

This is a great image:

S.C. Governor Nikki Haley is presented with a commemorative semi-auto rifle

S.C. Governor Nikki Haley is presented with a commemorative semi-auto rifle

Welder Jamieson Woodard leaned against a table a good way beyond the semi-circle of television cameras Monday as S.C. Gov. Nikki Haley got her commemorative, semiautomatic rifle from PTR Industries.

Woodard is part of the contingent of employees who transferred to Horry County when PTR left Connecticut because of restrictive gun laws passed by the state legislature.

The South Carolina commemorative gun follows other limited serial number models the company has produced, Fiorini said. Company officials thought that a special South Carolina edition could continue that marketing path as well as show appreciation for the welcome the company has gotten in the Palmetto State.

“When we had that idea,” he said during the ceremony, “we thought we’d make a dozen of those, 20 tops.”

As of his speech around noon Monday, he said, the company has received orders for 276 of the rifles.

Read more here


Sowell: “Obama is Not a Socialist”


Thomas Sowell provided this essay for Capitalism Magazine. He makes the same argument that has been made by our own RD Walker. ‘Obama is not a socialist. He is a fascist.”

What President Obama has been pushing for, and moving toward, is more insidious: government control of the economy, while leaving ownership in private hands. That way, politicians get to call the shots but, when their bright ideas lead to disaster, they can always blame those who own businesses in the private sector.

Politically, it is heads-I-win when things go right, and tails-you-lose when things go wrong. This is far preferable, from Obama’s point of view, since it gives him a variety of scapegoats for all his failed policies, without having to use President Bush as a scapegoat all the time.

Government ownership of the means of production means that politicians also own the consequences of their policies, and have to face responsibility when those consequences are disastrous — something that Barack Obama avoids like the plague.

One of the reasons why both pro-Obama and anti-Obama observers may be reluctant to see him as fascist is that both tend to accept the prevailing notion that fascism is on the political right, while it is obvious that Obama is on the political left.

Back in the 1920s, however, when fascism was a new political development, it was widely — and correctly — regarded as being on the political left. Jonah Goldberg’s great book “Liberal Fascism” cites overwhelming evidence of the fascists’ consistent pursuit of the goals of the left, and of the left’s embrace of the fascists as one of their own during the 1920s.

Mussolini, the originator of fascism, was lionized by the left, both in Europe and in America, during the 1920s. Even Hitler, who adopted fascist ideas in the 1920s, was seen by some, including W.E.B. Du Bois, as a man of the left.”


CBO: “It’s Not Possible To Determine Fiscal Impact Of Obamacare”

Of course we know what this is all about. The promises made by President Obama and his sycophants were all lies. We knew it at the time. There is no way a sixth of the US’s economy could be nationalized and run by bureaucrats and the costs would go down.

The Congressional Budget Office is tasked with recording those savings and reporting them to the people. What do they do if the promised savings don’t materialize? This is what they do. They say it’s not possible to track the numbers.

They lie.

INFLUENCE UNKNOWN: CBO Director Douglas W. Elmendorf and his agency surprised some fiscal experts by saying that it’s currently not possible to size up the fiscal impact of the 2010 law.

INFLUENCE UNKNOWN: CBO Director Douglas W. Elmendorf and his agency surprised some fiscal experts by saying that it’s currently not possible to size up the fiscal impact of the 2010 law.

Charles Blahous, a senior research fellow at George Mason University’s free market-oriented Mercatus Center, calls the CBO’s inability to estimate the net effect of the law “a real problem.”
“The ACA’s financing provisions were assumed to be effective so as to get a favorable score out of CBO upon enactment, but no one is keeping track of whether they’re being enforced,” says Blahous, a public trustee for Social Security and Medicare. “We receive occasional updates on the gross costs of the law, but none on whether the previously projected savings provisions are producing what was originally projected.”

When Congress passed the health care law in 2010, the CBO estimated it would reduce the deficit by more than $120 billion over a decade, compared to the agency’s current-law baseline projection of spending, revenue and the deficit. That meant the health care law would, in effect, pay for itself and deliver an additional fiscal bonus.

More at Roll Call

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Face It. The War On Poverty Is A Gigantic Failure

End it. Now. We Spent $3.2 Trillion… and Haven’t Put a DENT in REAL Unemployment

This is from Zero Hedge.

The financial media are gaga over the alleged great jobs numbers from last week.

We’ve been over this saga many times. The methodology for calculating jobs gains is not even close to accurate. The unemployment rate is now a marketing gimmick rather than an accurate economic metric.

Indeed, here are some staggering statistics that indicate just how messed up the US economy is right now.

· The labor participation rate is the lowest since 1978.

· There are over 90 million Americans without a job right now.

· An incredible 20% of all American families do not have a single member who is employed.

· There are over 47 million Americans on food stamps.

There is simply no way to spin these numbers. The US Federal Reserve has spent over $3.2 trillion and generated virtually no real job growth (accounting for population growth).”


All evidence points to one thing: We have been doing it wrong.

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Obamacare is a lot like Crystal Pepsi

BUMPED: As Obama enjoys his “Mission Accomplished” moment and promotes his fictional 8 million number like a carnival barker, you need to remember Crystal Pepsi and why it failed.

Remember Crystal Pepsi? Think back to about 1993.

Crystal Pepsi was rolled out in 1992 with much fanfare and and a huge advertising campaign. Sales were good. In fact, they were better than Pepsico had expected. Sales were very good.

And yet they discontinued the product. Why? It turned out that Crystal Pepsi buyers were consumers who were already Pepsi customers. Virtually all of the Crystal Pepsi marketshare was taken from Pepsico’s mainline cola product. Sales looked good but almost every sale of Crystal Pepsi resulted in a commensurate drop in sales of Pepsi Cola.

This is called market cannibalization and it can make a failing product look good as it creates a very negative impact on sales performance of the company’s existing related products. The joy of the Crystal Pepsi product team came with commensurate suffering among the Pepsi Cola team. The net effect was the increased cost of separate production and distribution lines but no real increase in revenue. Crystal Pepsi had to go.

How is that like Obamacare? Almost nine out of ten Obamacare enrollees already had insurance.

Most of the people who have signed up for Obamacare coverage already had insurance, raising questions about how the healthcare overhaul will reduce the number of uninsured Americans, a new survey reveals.

Just 11 percent of those buying through the healthcare exchanges were uninsured, a McKinsey & Co. study of 4,563 consumers discovered, reports The Wall Street Journal.

Meanwhile, nearly two thirds of the people jumping into Obamacare were switching from individual or employer-paid insurance plans.

Obamacare was aimed at providing insurance for 25 million of the 48 million Americans who were uninsured in 2012, partially by expanding state-run Medicaid programs.

So tonight, as Obama praises the number of people who have signed up for Obamacare, remember two terms: 1) Market Cannibalization and 2) Crystal Pepsi.

We can rest assured that, in the coming years, Obamacare will be as relevant and successful as is the clear, crisp Crystal Pepsi is today.


Gawker: “Income Inequality Institute Will Pay Paul Krugman $25,000 Per Month”

This is a joke, right?

No it isn’t.

Progressives take care of their own.

I'd be smug too

I’d be smug too

In late February, the City University of New York announced that it had tapped Princeton economist and New York Times blogger Paul Krugman for a distinguished professorship at CUNY’s Graduate Center and its Luxembourg Income Study Center, a research arm devoted to studying income patterns and their effect on inequality.

About that. According to a formal offer letter obtained under New York’s Freedom of Information Law, CUNY intends to pay Krugman $225,000, or $25,000 per month (over two semesters), to “play a modest role in our public events” and “contribute to the build-up” of a new “inequality initiative.” It is not clear, and neither CUNY nor Krugman was able to explain, what “contribute to the build-up” entails.

It’s certainly not teaching. “You will not be expected to teach or supervise students,” the letter informs Professor Krugman, who replies: “I admit that I had to read it several times to be clear … it’s remarkably generous.” (After his first year, Krugman will be required to host a single seminar.)”


ZH: 40 Central Banks Are Betting Yuan Will Be The Next Reserve Currency


From Zero Hedge:

As The South China Morning Post reports, Jukka Pihlman, Standard Chartered’s Singapore-based global head of central banks and sovereign wealth funds (who formerly worked at the International Monetary Fund advising central banks on asset-management issues), notes that:

At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility
The US dollar remains in charge (for now)…but

The US dollar is still the world’s most widely held reserve currency, accounting for nearly 33 per cent of global foreign exchange holdings at the end of last year, according to IMF data. That ratio has been declining since 2000, when 55 per cent of the world’s reserves were denominated in US dollars.”


Didn’t Make The Obamacare Deadline? No Insurance For You.

There are a lot of details in all those thousands of pages. Pelosi was right. Now we’re finding out what was in the bill.

From the AP via Yahoo:

WASHINGTON (AP) — Here’s more fallout from the health care law: Until now, customers could walk into an insurance office or go online to buy standard health care coverage any time of year. Not anymore.

Many people who didn’t sign up during the government’s open enrollment period that ended Monday will soon find it difficult or impossible to get insured this year, even if they go directly to a private company and money is no object. For some it’s already too late.

With limited exceptions, insurers are refusing to sell to individuals after the enrollment period for and the state marketplaces. They will lock out the young and healthy as well as the sick or injured. Those who want to switch plans also are affected. The next wide-open chance to enroll comes in November for coverage in 2015.

It’s a little-noted consequence of President Barack Obama’s health care overhaul, which requires nearly all Americans to be insured or pay a fine and requires insurers to accept people with health problems.”


Another Nail In The Obamacare Coffin

Lawsuit Filed Against Nevada Health Exchange

Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage. (Credit: Thinkstock)

Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage. (Credit: Thinkstock)

Las Vegas (CBS LAS VEGAS) – Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage.

Law firm Callister & Associates filed the lawsuit on behalf of Larry Basich, who signed up for state health insurance and paid premiums as far back as November, but then was not covered following a Jan. 3 triple bypass procedure that saw his $400,000 in medical expenses passed between the wrong insurance companies, the Las Vegas Review-Journal reports.

The lawsuit filed in U.S. District Court of Nevada on Tuesday alleges gross negligence and failure to do due diligence against the state of Nevada, the Silver State Health Insurance Exchange (which runs Nevada Health Link), and the company that won the contract to build the exchange, Xerox.”

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Rick Santelli: “The Real Enemy Is Not Deflation”

This is above my pay grade but Santelli is a smart guy. He is the one who came up with the idea for the Tea Party.

Santelli blasts, if you’re a saver, you understand now that you weren’t picked as winner.”

In fact, some might even say the ‘saver’ is the enemy of the recovery, but according to the Central Banks, as Rick rages, it is deflation that is the enemy. Bankers and governments love inflation because “if you owe a lot of people a lot of money, there’s nothing better than to pay it back with cheaper money.”

So, at the cost of living standards for the lower/middle class, the government inflates its debt away – so who is the real enemy.”

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“Banker leaps to his death in finance world’s 8th suicide this year”

This is beginning to look like a trend… a worrisome one.

From the New York Post:

Kenneth Bellando apparently jumped to his death from this building on the East Side on March 12.

Kenneth Bellando apparently jumped to his death from this building on the East Side on March 12.

A 28-year old Manhattan investment banker has died in an apparent suicide, police sources said.

Kenneth Bellando, who worked at Levy Capital since January, was found dead on the sidewalk outside his East Side building on March 12 after allegedly jumping from the sixth-story roof, sources said.

Bellando, a former investment bank analyst at JPMorgan, is the son of John Bellando, chief operating officer and chief financial officer at Condé Nast. His brother, John, a top chief investment officer with JPMorgan, works on risk exposure valuations.

Several John Bellando emails were cited during testimony at the Senate Finance Committee’s inquiry into the bank’s losses during the infamous London Whale trade fiasco.”


Spending decreases, spending increases…

We can’t afford to keep operating a rover that is already on Mars.

NASA’s baseline budget for the year beginning Oct. 1 pulls the plug on the 10-year-old Mars rover Opportunity, newly released details of the agency’s fiscal 2015 spending plan show.

The plan, which requires Congressional approval, also anticipates ending the orbiting Mars Odyssey mission on Sept. 30, 2016.

“There are pressures all over the place,” NASA’s planetary science division director Jim Green said during an advisory council committee teleconference call on Wednesday.

NASA currently spends about $13 million a year to support Opportunity.

We can’t afford the US Army.

The Army may need to cut its number of brigade combat teams nearly in half to accommodate the Pentagon’s plans to slice the Army’s size to below 450,000 soldiers after 2017.

Gen. John Campbell, the Army’s vice chief of staff and second highest-ranking member, in an interview with The Hill said the service is already planning to make cuts to its combat brigades, basic Army units of 5,000 soldiers that can be deployed and sustain themselves overseas.

Campbell did not say exactly how few active-duty brigades the Army could afford to have with the smaller Army, which is being cut from 510,000 soldiers currently.

What does the austere budget look like?

President's 2015 Budget Increases Spending 63 Percent Over Next Decade.preview

What is he spending it on? Here is an example… Bailing out insurance companies who would otherwise go belly up due to Obamacare.

ACA risk corridors: Obama’s proposal also includes $5.5 billion to fund a controversial portion of the ACA that creates a temporary pool of money to help insurers that face higher-than-expected costs from enrolling too few young, healthy individuals in coverage through the exchanges (Easley, “Healthwatch,” The Hill, 3/4).


Obama Wants Salaried Workers Paid Overtime

pen and phone

Here come the dreaded pen and phone.

President Barack Obama will direct the Labor Department to strengthen overtime pay protections for millions of workers, a White House official said.

The directive is meant to help salaried workers, such as fast-food shift supervisors or convenience store managers, who may be expected to work more than 40 hours a week without receiving overtime pay. The proposed change is part of Obama’s effort to focus on closing the gap between the wealthy and the poor, which also includes a call to raise the federal minimum wage from $7.25 per hour to $10.10.

The proposal is likely to be met with opposition from some Republicans and members of the business community who say the private sector should have flexibility in setting wages.

Under the new changes Obama is seeking, the Labor Department could raise the pay threshold for workers covered by overtime rules. Currently, salaried workers who make more than $455 per week are exempt from overtime.”

From ABC News


Bloomberg: “The World Is Broke”

“Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says”

A hundred trillion. And that’s just debt. It doesn’t include unfunded liabilities.


Image from Doug Ross

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements.

The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion in the same period, according to data compiled by Bloomberg. The jump in debt as measured by the Basel, Switzerland-based BIS in its quarterly review is almost twice the U.S.’s gross domestic product.

“Given the significant expansion in government spending in recent years, governments (including central, state and local governments) have been the largest debt issuers,” according to Branimir Gruic, an analyst, and Andreas Schrimpf, an economist at the BIS. The organization is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.”

Here is Bloomberg’s story

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Survival Blog: “SHTF Lessons From Venezuela”

Yep. Venezuela. This article was written by a man who is married to a Venzuelan woman who has relatives there. He is fluent in Spanish, and says much of his information comes from the Venezuelan news.

The news media here in the U.S. have completely missed the boat on the Venezuelan situation. Suffice it to say at this point that the conditions over the past 15 years have deteriorated so much that between one and two million out of 30 million citizens have fled the country. Violence has spiraled out of control. Some estimates indicate that during the period of 2003 and 2011(the same period as the Iraq war) the number of murder victims reported in Venezuela rivals the number of people killed in Iraq. In addition to the intolerable violence, socialist government policies collapsed many industrial and agricultural sectors.

So the people of all classes now find themselves in a situation in which electric power is no longer reliable, blackouts are common, and diseases that were eliminated are returning. Inflation can run up to 50% per month, rendering the Bolivar fiat currency nearly worthless. Since the government had forcefully expropriated (through the Venezuelan socialist version of eminent domain) huge tracts of productive domestic livestock and then given it “to the poor” who didn’t know how to farm it, domestic food production crashed.

This is the background that led to the most recent wave of protests, led primarily through a grass roots, social media-driven campaign by students of high school and college age. Their message was simple: “Enough! We need a new government.” Protests by hundreds of students swelled to become thousands. This startled the government, so they unleashed their goons to try to intimidate the students. However, a “strange” thing happened: The more they were attacked, the angrier the people became. After they killed their first victim, they thought the people would cower at home, but that’s not what happened. The people who had previously perceived their own personal safety as tantamount now placed their own lives in a lower priority over the lives of the youths who were fighting for their future. The numbers of protesters swelled into the hundreds of thousands. More were killed. Still they refused to back down. So the government unleashed the military. Citizen journalists with smart phones have documented proof of brutality and even executions by some of the military, and this has been disseminated around the world. For the first time since the height of Chavez’s revolution, nations and organizations that tolerated Chavez’s “excesses” are now beginning to move. Even some of the nauseating progressive politicians here in the U.S., who previously spoke warmly of Chavez, have tweeted photos of themselves supporting the opposition.”

Read more here


Zeke Spills The Beans

Ezekiel J. Emanuel

“Obamacare Architect: ‘Be Prepared to Kiss Your Insurance Company Good-Bye Forever’”

The Affordable Care Act, Obamacare, was not designed to make health care affordable. Nor was it designed to provide health care. It was designed to destroy the health insurance industry. Now one of the chief designers of the act says exactly that:

Ezekiel Emanuel, one of the architects behind Obamacare, is now claiming that “insurance companies as we know them are about to die.” Critics of President Barack Obama’s signature health care law have long alleged that one of the real goals of the law was to put private insurance companies out of business.

“The good news is you won’t have insurance companies to kick around much longer. The system is changing,” Emanuel writes in an op-ed on New Republic. “As a result, insurance companies as they are now will be going away. Indeed, they are already evolving. For the next few years insurance companies will both continue to provide services to employers and, increasingly, compete against each other in the health insurance exchanges.”

Due to Obamacare, “new actors will force insurance companies to evolve or become extinct,” he continues. Instead, new groups called “accountable care organizations” (ACOs) must start competing directly in the health care exchanges for exclusive contracts with employers.”

More at The Blaze


Trib: “Chicago credit rating takes major hit”

Uh Oh. Rahmbo is pushing Chicago toward the number one spot – ahead of Detroit. They are currently the second worst place in the nation to live. Anyone who tells you that Democrat governments know how to make things better is lying to you.


Chicago’s financial standing took a hit Tuesday when a major bond rating agency once again downgraded the city’s credit worthiness because of a huge government worker pension shortfall and the overall amount of money it owes.

Moody’s Investor Service rated the city’s upcoming $388 million bond issuance at Baa1, down from A3, a level set last year after an unusual triple downgrade. The new rating is still investment grade, but puts the city on a lower tier. Moody’s also gave the city a “negative outlook.”

From the Chicago Tribune


“Obamacare Tax Must Be Paid With Tax Return”


Here Come The IRS Bullies. They’re not after just conservatives.

A ‘Shared Responsibility Payment’ is pure socialism.

President Obama’s Internal Revenue Service today quietly released a series of Obamacare “Health Care Tax Tips” warning Americans that they must obtain “qualifying” health insurance – as defined by the federal government – or face a “shared responsibility payment” when filing their tax returns in 2015. The term “shared responsibility payment” refers to the Obamacare individual mandate tax, one of at least seven tax hikes in the healthcare law that directly hit families making less than $250,000 per year.

In “Four Tax Facts about the Health Care Law for Individuals” the agency writes:

Your 2014 tax return will ask if you had insurance coverage or qualified for an exemption. If not, you may owe a shared responsibility payment when you file in 2015.

In “The Individual Shared Responsibility Payment- An Overview” the agency warns Americans they must prove they were covered each and every month of the year:

For any month in 2014 that you or any of your dependents don’t maintain coverage and don’t qualify for an exemption, you will need to make an individual shared responsibility payment with your 2014 tax return filed in 2015.”

Read more here


It’s Not Just New York

Wealthy, educated people are leaving Chicago too – in droves.

Leaving Cook County

If you’re smart or you have a decent job, you aren’t staying in Cook County according to a new study:

As the Great Recession churned job prospects for many, Cook County lost about 13,000 residents with six-figure household incomes to other places, despite the widely hyped revival of downtown housing and jobs.

Between 2007 and 2011, Chicago and its immediate suburbs also ended up with about 10,000 fewer residents with a bachelor’s degree or higher, even after accounting for new arrivals, according to the U.S. Census Bureau’s first attempt to track population shifts by income and education at the county level.”

Hat tip to Second City Cop


Leftists want their lunch and they want it free


I am curious. From where do liberals believe funds for new government mandates come? For example, where do leftists think the funds to pay for an increase in minimum wage will come? Will the funds come from…

    …some kind of spontaneous wealth generation associated with the magic of passing legislation?

    …out of the pockets of business owners thus reducing their incomes improving income equality?

    …the Scrooge McDuck cash-and-gold vaults of wealthy industrialists?

    …the free lunch counter?

    …the stimulus fairy?

The one place they are certain the funds for new government mandates will never, ever originate is their pockets. That would be unacceptable to the left.

Well, here we have a business who wanted them to think about who is really covering the cost of Obamacare.

A local restaurant has added a surcharge to every tab in order to pay for its employees’ healthcare.

“Everyone has the same policy that I do as the owners,” owner and chef Walter Manske said. “And we offer it to everyone; (the) dishwasher, busboy, waiters, across the board.”

Manske says that, ultimately, it is up to the customer whether to take the surcharge out of the gratuity.

Oh, boy. That three percent charge has the moonbats hopping mad. Here are some representative comments.

It’s not MY responsibility to take care of YOUR employees’ healthcare… that’s YOUR job.

So now when you make me a sandwich I owe you health care? No thanks. You are welcome to serve people who accept this arrangement, but it won’t be me. I pay for the sandwich only.

If this is what they want to do they need to put a large sign at the front of the place telling customers well beforehand.

So in addition to paying the bulk of the employee’s salary with tips, we’re now asked to fund their benefits too? Stuff it. I’ll make a sandwich myself.

Eat at home and don’t pay for any increases in your restaurant bill.

Well, what do you know? It turns out that folks don’t want to pay for increased costs associated with government mandates like Obamacare. Who would have guessed?

Of course anyone who isn’t an economic muggle understands that the only difference between this restaurant and every other similarly situated restaurant is that this one is itemizing its government mandated increase in costs. The rest of them are simply increasing menu prices and thus concealing the cost of Obamacare.

As for the last two commentators, someone should tell them the grocery stores where they buy their eat-at-home chow have raised prices to pay for Obamacare too.

There is nothing so jarring to the moonbat mind as the discovery that his lunch isn’t, in fact, free and that he will be required to contribute funds to pay for the programs he so strongly supports. Leftists hate it when the stimulus fairy lets them down and they are forced to pay for what they demand.


Remedial Economics in Argentina

“All right boys and girls, recess is over. Settle down. Settle down, now. Jason, put the Frisbee under your seat or it is mine. Everybody settle down and start acting like 6th grade young men and young ladies.”

“That’s better.”

“Now, we have been studying economics so I am going to ask a few questions. Raise your hand if you know the answer.”

“What is the result of the government printing money at a rate faster than the growth of the economy? Yes, Kelly… That’s right; inflation. Very good.”

“What is the result of inflation? Okay Aiden, tell us. Very good, prices go up. That is correct.”

“Liam, you have a question? Why doesn’t the government just order stores to keep prices the same? Good question. Sometimes governments do that. Does anybody know what the result of governments ordering that prices not be increased while inflation is occuring?”

“Whoa! So many hands at once. Okay, Chloe, tell us what happens. That’s right, Chloe. If, during a period of inflation, prices are capped, the result will be shortages.”

“I think everyone here has a very good understanding of basic, 6th grade economics and will do fine on the test.”

Sadly, the people running Argentina don’t have the same grasp of economics as this class of 12 year olds.

BUENOS AIRES–A day after reporting the highest inflation in over a decade, Argentina’s government fined several retail chains, including France’sCarrefour SA and U.S.-based Wal-Mart Stores Inc., for failing to stock certain price- capped products.

Commerce Secretary Augusto Costa said, in a presentation to reporters, the government fined Carrefour about $ 167,000 and Wal-Mart around $77,500. The companies were allegedly found to have an incomplete stock of certain products that they agreed to sell at capped prices. Changomas, also owned by Wal-Mart, was fined about $41,000. Other local retail firms were also fined.

The fines also come a week after political activists allied with the government plastered this capital city with poster-size photos of retail executives accusing them of fueling inflation by raising prices.

The posters featured portraits of executives from the local units of Wal-Mart, Carrefour and other companies. ” These are the people who steal your salary,” the posters said. “They raised the price of everything to take your money.”

On Friday, Mr. Kicillof defended the government from critics while placing blame for inflation on businesses. “The government doesn’t raise prices,” Mr. Kicillof said. “Some businesses may occasionally be justified in raising prices, but in most cases there can be no justification for this,” he said.

Mr. Kicillof criticized economists who say that high public spending is causing prices to rise. “They say that public spending is very high and that it’s inflationary,” he said. “Gentlemen, why don’t you take your masks off and say where exactly you think the government should cut spending.”

Argentina is a basket case and it is still better run than Venezuela. Both, however, are employing the logic of the Obamanation.