The History of Monopoly

To settle an argument while on vacation, we had to look up the history of the board game Monopoly. This is quite a fascinating history, dating back to the early 1900's. The game was designed to illustrate the negative effects of rent and taxation, specifically to promote Georgism. I'm not sure it had much effect on public opinion, but it makes me want to create a game to highlight the benefits of the FairTax. ;-)

The Creator's Culture

I ran across a very insightful blog posting today that I have to share.

In this community, production is valued. Members celebrate other individual’s hard work, congratulating them when they release their new products.
...
Hard work, creativity, passion, production — that is what is rewarded and celebrated.

This is what our country (heck -- the world!) needs more of.

As we celebrate the those that do not produce, we ourselves question the value of hard work, and it leads to nasty things like dependency on government and apathy for our purpose in life. If we're not careful, we'll end up like the humans in Wall-E.

So, without further ado, go out there and make something!

FairTax Special Order

This is long (an hour), but goes over most of the arguments for FairTax.

http://www.fairtaxnation.com/.

Rah! Rah! Rah!

Fear leads to anger. Anger leads to hate. Hate leads to suffering.

- Yoda

It's time to stop fearing "the economy".

I Love Cartoons

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Well Played

Bit of a Slump

I just haven't been in the mood lately to post. It seems to me that my government has gone insane, spending away our (great?) grandchildren's tax money. There's all this talk about stimulating the economy, but it is just politics as usual.

Nothing in the "stimulus" bill is really meant to get things moving. The President is relying on fear to bully his agenda through Congress. He learned very well from the previous administration how to do that. There is just a token amount in the bill to create jobs, most of it is long-term. Congress sailed it through because there are enough hands in the till these days, no one notices what is really happening. This is all about government control. Federal control. Bringing more power to the federal government, because who isn't getting money from this?

Never mind that most of our representatives couldn't even read the final text of the 1000-page bill because it hasn't been posted long enough. So much for transparency.

Let's do some math for fun. I heard this on Dave Ramsey, but I wanted to see it in print:

	$787,000,000,000.00
divided by	3,500,000.00	jobs
equals	$224,857.14	per job

How's that for government efficiency on creating or saving jobs? And every time I hear that number from our representatives it gets smaller or just downplayed as an estimate.

According to the IRS, there are about 138 million taxpayers in the U.S. If we take that same number above, that would come out to about $5700/taxpayer. Add in last years $800 billion bank welfare program, and we're talking about $11,500 per taxpayer in the United States.

$11,500 per taxpayer. That represents the tax on a single person in the US making about $60,600 per year in taxed income. I want you to think of this not as money being paid to you, but money being taken from you. Just let that soak in.

Who do you think is going to pay for this, if the government is already spending more than it takes in? Yep: our children, grandchildren, and their children. You would think that people would learn from Madoff that this is just a Ponzi scheme played out at a whole new level.

The real catch is, this little scheme isn't going to do anything for the economy. We are the economy. The economy will recover when we all stop feeling scared about losing our jobs and start buying things again. How do you really do that? Well, how about offering companies a $20,000 tax credit for every employee that they hire this year (net gain in employment)? Let's see how that math looks:

	$20,000	per job
multiplied by	3,500,000	jobs
equals	$70,000,000,000	total

Hmmm... Dave's plan cost's 10x less than then one that just sailed through Congress. It's almost a rounding error -- heck, they've knocked that much out of the plan that just went through over the course of the last couple of weeks.

This plan stops the hemorrhaging in jobs, brings confidence back to the American consumer, and starts immediately.

It's just too bad no one in Washington will listen to this plan, since it doesn't offer any more power for them.

He Who Has the Gold, Rules

Ah, it's nice to see that some people are paying attention out there.

Do you wonder why Obama is letting the Republicans and Democrats do whatever they want with the stimulus package? The answer to me is quite obvious - he doesn’t care about it and what it does. Look through it - it is chump change for everyone. $1,000 tax break per couple, some money for states and cities, money for the road builders, some for solar energy, some for university students, but all of it chump change. The simple reason is that he doesn’t care about the stimulus because it doesn’t matter.

The big prize is what his funders in the financial sector want and that is the bad bank where they can pour the multi-trillions of dollars of bad loans onto the taxpayer without losing their jobs, their stockholders being wiped out, and some of them having to do the perp walk. It is the next banking bailout where the massive transfer from the taxpayers to the wealthy is going to occur. Watch the ball. Don’t listen to the words, believe the “shocked” indignation, or accept that Obama and the Congressional Democrats do not know what is going on.

http://www.creativeclass.com/creative_class/2009/01/31/understanding-the-obama-stimulus/

About this Recession...

So, remember back in April, when I stated that we weren't in a recession? Apparently, I don't know what I'm talking about, as the NBER issued a statement last month that yes indeed we have been in a recession since November of 2007.

To be fair to me, they did correct the data, and the recession started in the last quarter that I had data for. Here's an updated chart:

Now the chart does indeed dip below zero a couple of times. This alone isn't enough to warrant a recession, though... so what else was happening?

Well, there were a couple of things. First, NBER looks at factors other than GDP, "The committee believes that domestic production and employment are the primary conceptual measures of economic activity." So, they're looking at employment as well as production, and employment "reached a peak in December 2007 and has declined every month since then."

Second, since I was just looking at the GDP data, I missed an important point about the variance of that data against the Gross Domestic Income data.

The committee believes that the two most reliable comprehensive estimates of aggregate domestic production are normally the quarterly estimate of real Gross Domestic Product and the quarterly estimate of real Gross Domestic Income, both produced by the Bureau of Economic Analysis. In concept, the two should be the same, because sales of products generate income for producers and workers equal to the value of the sales. However, because the measurement on the product and income sides proceeds somewhat independently, the two actual measures differ by a statistical discrepancy. ... [T]he currently available estimates of quarterly aggregate real domestic production do not speak clearly about the date of a peak in activity.

So, clearly they're looking a little deeper than I did. I'll make another post when I get that data tabulated and charted so we can examine it closer. For now, let's look at the employment data. This comes from the Bureau of Labor Statistics. I can only see monthly data there that preceeds the current recession by a month (ftp://ftp.bls.gov/pub/suppl/empsit.ceseeb1.txt).

So, there is other data to cull through, but for now, I've at least pointed out why my previous post was inaccurate.

Removing the Link Between Money and Laws in Congress

I have to admit, that I wasn't a fan of this plan at first. Lessig has made a compelling case that the most important problem we need to solve with our Congress is their need to perpetually raise money to be re-elected. This need keeps them from focusing on the real problems we face.

Vote for FairTax

Change.org is running a program called Ideas for Change in America.

Ideas for Change in America is a citizen-driven effort to identify and create momentum around the best ideas for how the Obama Administration and Congress can turn the broad call for "change" across the country into specific policies. You can help by submitting an idea for how you would change America, discussing ideas with others, and/or voting for your favorites.

FairTax is already listed there, but more people need to vote on it. Go out and vote for FairTax at: https://www.change.org/ideas/view/fair_tax

What I'd Like to Give My Son for Christmas

Lincoln's Cannots

You cannot bring about prosperity by discouraging thrift.
You cannot help small men by tearing down big men.
You cannot strengthen the weak by weakening the strong.
You cannot lift the wage-earner by pulling down the wage-payer.
You cannot help the poor man by destroying the rich.
You cannot keep out of trouble by spending more than your income.
You cannot further the brotherhood of man by inciting class hatred.
You cannot establish security on borrowed money.
You cannot build character and courage by taking away men's initiative and independence.
You cannot help men permanently by doing for them what they could and should do for themselves.

- Rev. William J. H. Boetcker

A Crisp November Morning

There's nothing like fall. The crisp, damp morning air makes each breath even more noticeable. Going for a short walk in this air reminds me what a blessing my life is.

As I walked in this early morning air, I enjoyed the right to go out to the polls and cast my ballot. This right is not taken lightly by me, and for all our country's problems, the solutions lie in our people. Today is just one step out of many, and we're allowed to make mistakes -- but they're our mistakes. This is where democracy starts.

Take this one step today, and go out and vote.

The "Rescue" Plan, in Plain English

From Mish's Global Economic Trend Analysis

To stimulate lending, the bailout plan will attempt to recapitalize banks. The method of recapitalization is best described as robbing Taxpayer Pete to pay Wall Street Paul. In essence, money is taken from the poor (via taxes, printing, and weakening of the dollar) and given to the wealthy so the wealthy supposedly will have enough money to lend back (at interest) to those who have just been robbed.

If you prefer comics, then you'll like this one from Sinfest:

Yes, Virginia, there is Pork in the Bailout

As I've been striving to learn Congressional process, after being very annoyed at the pork hiding in the Bailout bill, I stumbled across the Wikipedia entry for H.R. 1424.

I should have known better, but wanted to struggle through the raw text myself. All 3 divisions were indeed passed as the same law, so all that pork is sent to the pit. I still have a lot to learn, as this practice is common. Most of this is just disgusting to me, as the three Acts in this bill have nothing in common with each other.

No wonder our government spends so much.

::sigh::

"Pray for our republic," intoned Rep. Marcy Kaptur, D-Ohio, a leading opponent of the measure. "She's being placed in very uncaring and greedy hands."

Historic bailout bill passes Congress; Bush signs - http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/financial_meltdown

Now, I have to vote everyone out of office that voted for this thing. Thankfully, my Representative, Michael McCaul, voted against this bill. Unfortunately, Senators Cornyn and Hutchison now must go.

A Letter from Joe Biden

In my quest to spread The Common Sense Fix I've exposed myself to probably far to many mailing lists. This was pretty evident this morning when I received an email from Joe Biden.

Ryan --

If you saw tonight's debate, you saw Governor Sarah Palin give a spirited defense of the same disastrous policies that have failed us for the past eight years.

She couldn't identify a single area where she or John McCain would change George W. Bush's economic or foreign policy positions.

If you want something different, Barack and I need your help.

Make a donation of $5 or more right now to bring about the change we need.

The change we need is fixing this broken economy from the bottom up -- not tax breaks for the wealthy and huge corporations that ship U.S. jobs overseas. We need to focus on defeating al Qaeda and the Taliban and restoring America's standing in the world -- not an unending commitment in Iraq.

Let's be clear: Governor Palin and Senator McCain are offering nothing but more of the same failed Bush policies at home and abroad, trying to disguise them in the rhetoric of change.

Americans need real solutions and real change.

We're in this together and there's a lot to do before Election Day. Please make a donation of $5 or more right now to support this campaign for change:

https://donate.barackobama.com/changeweneed

This is the most important presidential election you'll be part of in your life.

Thank you for all that you're doing.

Now let's get to work and change this country,

Joe

Here's my reply, which I'm sure will go nowhere.

Ah, Joe, more of the same. I watched the debate and saw very little of consequence for the average American. All I saw is the same politics as usual -- from both sides. You're right, we need real change in this country.

I'm tired of the same old class warfare arguments that tell me to start making one group or another pay more of the burden of running this country. It's time we got back to "All Men Are Create Equal", and started believing in it again. Punishing successful Americans for their income is not the answer, it just creates a disincentive to build wealth and become better.

Corporations are wealth distribution machines, as a company does not amass 'wealth'. Corporations build jobs. Heavily taxing corporations just gives less incentive for them to build them here. It is about time we started making America compete in the world marketplace, and give corporations a reason to create jobs here.

Think for a minute how companies pay taxes. Any income a corporation creates has to be divided up among the employees, the investors, suppliers, debts incurred, growing the business, and the government. A corporation doesn't amass wealth -- it distributes it, so any taxes a corporation pays is taken away from creating wealth for everyone else on that list.

The only way we're going to get out of this mess is to grow this economy. It's time for real change. We need to stop taking so much money away from the American people to give to a bloated government that spends far more than it takes in. Government needs to focus on creating incentives for businesses to start up and thrive in these United States.

It's time for real change. Let's get to work. Three initiatives to get us on track are The Common Sense Fix, change-congress.org, and fairtax.org. It's time for change that can make a difference.

Ryan

I'm not sure if any of this will make a difference, but it feels far better than doing nothing, or whining about it around the water cooler.

I'm Tired... of Election Year Politics

I'm tired of all the same old rhetoric, the same politicking, the same class warfare, and the same corruption. It's time for real change in our government, not more of the same. That's why I've had several politically directed posts in the past several months. I think it's time to enumerate just what I'm tired of.

Class Warfare

Whenever I hear the words rich, poor, greedy, or redistribution of wealth, I know that the person talking is just trying to get us to fight amongst ourselves so they can walk off with the money, power, or whatever it is they set out to take. It's a tactic to deflect from real issues.

Fairness comes from equality, not placing different standards on any particular class of people. Anyone who talks differently is just trying to play one group against another. It is time to stop playing that game. This is one of the reasons I started supporting FairTax, which would take away the inequities in the current tax code and make taxes fair.

Evil Corporations

This mostly involves talk about taxing the excessive profits that a company makes. On the surface, companies appear to pay many taxes -- taxes against their profits, taxes against the income they are providing employees, and taxes on investments they make. Over the water cooler, I heard recently about the tax benefits of employing a workforce in India (I am not kidding).

Now, think for a minute how companies pay taxes. Any income a corporation creates has to be divided up among the employees, the investors, suppliers, debts incurred, growing the business, and the government. A corporation doesn't amass wealth -- it distributes it, so any taxes a corporation pays is taken away from creating wealth for everyone else on that list.

It all sounds good when the evil corporation being taxed isn't identified as you, but in some way or another, you are on that list. That's what makes corporate taxes such an effective way at hiding the true nature of a tax. Again, that's another reason I'm supporting FairTax.

Corruption

The whole process has become corrupt. Money invades and distorts at every level of politics. Earmarks are a staple of the modern political arsenal.

Take a gander at the latest atrocity coming out of government, know as The $700 Billion Bailout. It's 451 pages long!!! For something that has been deemed so critical to our economy, I would have thought they'd be brief and expedient (for reference, The Common Sense Fix is only a single page long, though it might grow to 5 pages it it was formatted like the current bill).

If you bother to scan through that document, you'd find juicy provisions for Energy, Mental Health, Disaster Relief, Film and Television Production, a Motorsports Racing Track Facility, Railroad Track Maintenance, Mine Rescue Team Training, Economic Development for Samoa, and I'm not even covering half of it. Who doesn't have their hand in the till for this one? Seriously, I'm not making this stuff up.

[Note: In reexamining the text, I found that E.E.S.A. is part of Division A, and most of the other troubling stuff I've noted above come from Divisions B & C. I've found a better link for E.E.S.A. here. All these Divisions appear to be part of HR 1424 (which comes from the Senate website), but it's not clear to me if they all are voted on at once. If anyone knows, please leave a comment.]

I'd recommend reading the bill for entertainment value as well. The name given for the bill is E.E.S.A. (Emergency Economic Stabilization Act) and it's main provision is for a T.A.R.P. (Troubled Assets Relief Program), apparently to cover their backsides. It sounds like stuff out of an old comic book!

This is just normal business in Congress. This bill is an ordinary knitting together of all the wants and needs of various constituents, tying together various parts of other legislation, nipping here, extending there -- such that most of the bill is illegible. It makes for a great opportunity to sneak things in.

I would guess that most elected officials don't read the whole bill, and instead read something like this summary of the bailout, which conveniently leaves out all the earmarks hiding in that little bill. Heck, I don't think even journalists read this stuff, because I've certainly never seen it on CNN.

This is why I'm supporting the Change Congress movement. We've got to demand real change out of our system, and vigilantly defend our government from the corruption that has infected it.

The Common Sense Fix

I love Dave Ramsey. He's the guy out there giving financial advice that my grandmother would give. Since my grandparents lived through the Great Depression, I trust them. He has a plan that makes sense, and we should pass this, instead of incurring more national debt.

Here's a quick and dirty summary of the plan:

1. Insure the subprime mortgages
2. Remove mark-to-market accounting rules for 2 years
3. Eliminate capital gains taxes

Go read it at daveramsey.com, and send it to your congress representatives. Congress needs to hear from us that we know what we want.