Wintery Knight

…integrating Christian faith and knowledge in the public square

Dennis Prager: why the left doesn’t care about bad economic news

This was posted last night on Investors Business Daily.

Excerpt:

Almost everywhere the left is in control — in California, for example — the economic news is awful. But this has no effect on the ruling Democrats, the Los Angeles Times editorial page, New York Times economics columnist Paul Krugman or others on the left.

There is one overriding philosophical reason and one political reason for this.

He lists a number of the economic problems in California – a state that is controlled top to bottom by Democrats.

Why doesn’t it bother Democrats that economies decline when they are in control?

He writes:

Why do these state-crushing economic statistics — nearly every one of which is the result of left-wing policies — have no effect on California’s Democrats, the Los Angeles Times editorial page, New York Times economics columnist Paul Krugman or almost anyone else on the left?

The answer is that they don’t care.

Yes, of course, as individuals with a heart, most people, right and left, care about people losing their jobs.

But in terms of what matters to the left and the policies they pursue, they don’t care. The left and the political party it controls do not care if their policies force companies to leave the state (or the country).

They don’t care about the coming high inflation caused by quantitative easing (printing money) — Krugman calls it the inflation obsession — or the job-depressing effects of high taxes or energy prices that hurt the middle class or compelling businesses to leave.

They don’t care because the left is not interested in prosperity; the left is interested in inequality and in the environment.

Furthermore, the worse the economic situation, the more voters are likely to vote Democrat. The worse the economic situation, the greater the number of people receiving government assistance; the greater the number of people receiving government assistance, the greater the number of people who will vote Democrat.

Therefore, both philosophically and politically, the left has no reason to be troubled by bad economic news. And it isn’t. It is troubled by inequality and carbon emissions.

He could have done the same analysis in Detroit, where Democrats govern unopposed by Republicans, and have for years.

The main problem of the left is “inequality”. If they put in place policies that make everyone earn minimum wage, regardless of what they do, that would be a great victory for them. If the price of prosperity is “economic inequality”, then so much the worse for prosperity. If you tax people who produce more value than a minimum wage worker so that they make the same as a minimum wage worker, you can forget about the kinds of businesses that produce cars, computers and appliances. People invent these things and start businesses in order to make a profit. That’s why they spend their savings and take the risk to start a business. But if everything they earn is taxed away, then we will have to do without new products and services. This is understood in the private sector, but not by the government, nor by the low-information voters who vote for bigger government.

We have to stop allowing the Left to pain themselves as saints because they talk about the poor. What they don’t like about the poor is the rich. If everyone were poor, they wouldn’t talk about the poor – because everyone would be equal. That’s their goal.

Filed under: Commentary, , , , , , , , ,

Canada surpasses USA to lead the world in median income after taxes

From the radically leftist New York Times, of all places.

Excerpt:

The American middle class, long the most affluent in the world, has lost that distinction.

While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.

After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.

The numbers, based on surveys conducted over the past 35 years, offer some of the most detailed publicly available comparisons for different income groups in different countries over time. They suggest that most American families are paying a steep price for high and rising income inequality.

Although economic growth in the United States continues to be as strong as in many other countries, or stronger, a small percentage of American households is fully benefiting from it. Median income in Canada pulled into a tie with median United States income in 2010 and has most likely surpassed it since then. Median incomes in Western European countries still trail those in the United States, but the gap in several — including Britain, the Netherlands and Sweden — is much smaller than it was a decade ago.

In European countries hit hardest by recent financial crises, such as Greece and Portugal, incomes have of course fallen sharply in recent years.

[...]The struggles of the poor in the United States are even starker than those of the middle class. A family at the 20th percentile of the income distribution in this country makes significantly less money than a similar family in Canada, Sweden, Norway, Finland or the Netherlands. Thirty-five years ago, the reverse was true.

Thanks Obama! Canada is doing very well with their conservative prime minister, but things are not so good down here.

Filed under: News, , , , , ,

Democrat who has served 38 years in Congress down 14 points in latest poll

Michael Barone reports on it in the Washington Examiner.

Excerpt:

Here’s an astonishing poll: David Freddoso at Conservative Intelligence Briefing links to a report by the Washington Post’s Aaron Blake that West Virginia 3rd district incumbent Rep. Nick Rahall trails Republican challenger state Sen. Evan Jenkins by a 54-percent to 40-percent margin. The poll was conducted by the Tarrance Group, a Republican firm which, like several Democratic and other Republican firms, has had a good record for reliability over the years.

This is astonishing for several reasons. Rahall, first elected in 1976, is now the seventh most senior member of the House, with three of the more senior members retiring (John Dingell, Henry Waxman, George Miller) and another with a serious primary challenge (Charlie Rangel). Moreover, his district in southern West Virginia has historically been very Democratic; in its previous boundaries it voted for Walter Mondale overRonald Reagan in 1984. Rahall won in 1976 by 46 percent to 37 percent over Ken Hechler, his predecessor in the seat, who after losing a Democratic primary for governor ran as a write-in candidate; the Republican nominee received only 18 percent of the vote. From 1978 to 2008, Rahall was re-elected with at least 64 percent of the vote, except in 1990 when he beat Republican Marianne Brewster by only 52 percent to 48 percent.

But this is coal country, and Rahall’s margins have gone down after President Obama was elected president. In 2010, Rahall won by a reduced margin of 56 percent to 44 percent, and in 2012, his margin was only 54 percent to 46 percent. Obama’s unpopularity surely cost him: John McCain carried the district within its then-boundaries by a 56-percent to 42-percent margin in 2008, and Mitt Romney carried the current district 65 percent to 33 percent in 2012. Rahall is ranking Democrat on the Transportation and Infrastructure Committee and was Chairman of the Natural Resources Committee when Democrats had a majority in the House; these are committee positions of importance to a mountainous coal district, but apparently they are not enough to help him now.

So, this time the culprit isn’t Obama’s terrible health care policy, it’s Obama’s terrible energy policy. Remember, the Environmental Protection Agency basically banned construction on all future coal plants which cost a lot of jobs. Not only that, but coal plants have been closing because of Democrat energy policies. Lastly, restrictions on coal production by Democrats have made energy prices go up, especially in the South. So people who are connected to the coal industry in Ohio, Pennsylvania, West Virginia, etc. should really be thinking a second time about supporting the Democrats in 2014 – and 2016, too.

Filed under: News, , , , , , , , , , , , , , , , , , , , , , ,

Conservative Party of Canada on track to deliver budget surplus in 2015

Prime Minister Stephen Harper

Prime Minister Stephen Harper (Conservative Party)

Story from Yahoo News about the results delivered by the Conservative Party of Canada.

Note: To understand the numbers in the article, simply multiple the numbers by 10 to compare with American numbers – Canada’s economy is about 1/10 the size of ours. For example, our GDP is $15.7 trillion and theirs is $1.8 trillion. Our national debt is $17 trillion, while their’s is $1.2 trillion.

Excerpt:

Canada’s Conservative government looks set to comfortably balance its books in 2015 or even sooner, its latest budget showed on Tuesday, with cuts in spending on the public service more than offsetting a series of modest new expenditures.

The low-key spending plan leaves Prime Minister Stephen Harper well-positioned to offer tax breaks and other initiatives in the runup to an election scheduled for October next year.

“Some people will say this budget is boring,” Finance Minister Jim Flaherty told reporters ahead of the budget speech. “Boring is good.”

The budget shows a deficit of C$2.9 billion ($2.63 billion)in the 2014-15 fiscal year, up from the previous estimate of C$5.5 billion. That balance includes a C$3 billion contingency fund, which in fact reveals an underlying surplus that year.

Flaherty acknowledged the budget would be narrowly balanced this coming year without the contingency fund, but said he preferred to have a “nice clean surplus next year”.

The government estimates a bigger-than-expected C$6.4 billion surplus in 2015-16. In the year ending March 31 of this year, the deficit is pegged at C$16.6 billion.

[...]Flaherty, who is 64 and battling a rare skin disease, has staked his reputation on eliminating Canada’ small deficit, equivalent to about 1 percent of gross domestic product (GDP), and restoring the reputation the country had before the global financial crisis as having the strongest fiscal record in the Group of Seven major economies.

Germany is currently the only G7 country running a surplus, but Canada’s ratio of debt to GDP is substantially less and it is one of a handful of countries with a triple-A rating from rating agencies.

Canada is beating us in debt to GDP:

G7 Debt to GDP as of 2013

G7 % Debt to GDP as of 2012 (lower is better)

Canada is beating us in economic growth:

G7 GDP growth for 2013

G7 % GDP growth from 2007 to 2012 (higher is better)

Source: BBC Business

The next Canadian election is in 2015. I know that the Liberal Party is currently leading in the polls, but I found some good news. The Canadians just redistricted after their census, and there are 30 new electoral districts. If the same turnout occurs in 2015 which occurred in the 2011 election, then the Conservative Party of Canada would get 22 out of 30 of those new seats. However, I am concerned. I want Harper to keep his majority, as he and Tony Abbott (Australia) are two bright conservative stars who show people what conservatives can do. 

Filed under: News, , , , , , , , , , , , , , , , , ,

American Spectator praises Australia’s bold new conservative leader

Tony Abbott, Prime Minister of Australia

Tony Abbott, Prime Minister of Australia

Well, I think we can get some encouragement from this article from the American Spectator.

Let’s take a look at his policies and appointments:

On economic policy, his government has moved in the opposite direction of those who favor Dodd-Frank-like behemoth approaches to the financial industry. Instead it’s opted to simplify regulation. As the minister responsible for the reform bluntly pointed out, “no amount of legislation will ever be a guarantee against another Storm Financial.” Indeed it’s often excessive regulation that creates opportunities for financial shenanigans by industry insiders.

Regarding the welfare state, Abbott’s minister for Social Security, Kevin Andrews (another conservative politician-thinker), has announced a major overhaul of a welfare system that was starting to drift in a distinctly European-direction. Predictably the left are up in arms. But so too are those rent-seeking Australian businesses who now find themselves dealing with a government uninterested in subsidizing them. That’s nothing, however, to the fury that greeted Abbott’s disbanding of the climate-change bureaucracy established by the preceding Labor government.

[...]The first sign of Abbott’s seriousness about obstructing the left’s long march through the institutions was his government’s appointment of the policy-director of the center-right Institute of Public Affairs to the nation’s Human Rights Commission. This was widely seen as the beginning of an effort to re-balance an organization long criticized as monolithically left-wing. Since then Abbott has indicated that major changes are coming to the ABC: Australia’s government-funded institutional — and ideological — equivalent of the BBC.

[...]Along the same lines, Abbott’s education minister, Christopher Pyne, has initiated a review of the national curriculum implemented by the previous government. A moment’s glance at the curriculum’s treatment of history soon illustrates the extent to which it seeks to downplay Australia’s indisputably Western heritage. In the words of Sydney’s Cardinal George Pell, “Europe, Britain and the United States are mentioned 76 times, while Asia is referred to on more than 200 occasions.” This disparity is odd because although Australia is certainly in Asia, no objective observer could say that Australia is “of” Asia. Moreover, while Australian students learn about “Gaia” and other deep-green fantasies in grade 9, many Australian universities find they need to put the same students through remedial English classes once they begin college.

Then there are Abbott’s initial steps on the international stage. Take, for instance, his recent remarks at Davos. Much of the address was devoted to pushing a strong free trade agenda and insisting that governments should let business do what it does best: promote lasting economic growth. “After all,” Abbott said, “government doesn’t create wealth; people do, when they run profitable businesses.”

In the same speech, however, Abbott made the conservative point that economic prosperity and freedom can’t be sustained in a value-neutral world. Nor did Abbott shy away from relentlessly pressing one of the most important moral arguments for free trade articulated long ago by Adam Smith: that economic freedom, combined with the right institutions, radically reduces poverty faster than any other approach. “No country,” Abbott added, “has ever taxed or subsidized its way to prosperity.”

All in all, the address added up to a solid integration of sound economics with conservative principles. That’s what makes Abbott different from, say, Canada’s Stephen Harper or Spain’s Mariano Rajoy. Abbott happily engages in the indispensable task of moral suasion in favor of conservative positions. What’s more, he’s quite good at it. With his rare combination of plain-speaking and intellectual substance, Abbott makes conservative ideas sound, well, reasonable to the average voter.

Now, I personally thought that prime minister Stephen Harper of Canada was the best leader of any nation out there, but I had not been following Australian politics as much as I should be, and now I think I’ll give the crown to Abbott. He seems to have a good fusionist view that integrates economic policy and social policy, and that makes him better than Harper, in my view. I would like to see Abbott flex his muscles on foreign policy, as well. Something to look forward to.

Filed under: News, , , , , , , , , , , , , , , , , , , , , , , , ,

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