Liberté, égalité, vacances

France’s continued Hollande from reality gets a rude wake-up call from America.

With an unemployment rate that’s been hovering around 10% for nearly four years, unemployment benefits that somehow manage to be the most generous in Europe and yet exclude thousands of eligible non-workers, and an attempted tax bracket of 75% on top earners, France clearly isn’t economically serious about domestic jobs.  That hasn’t stopped them from being seriously upset at the lack of foreign capital coming to their rescue.  Or when that same foreign capital criticizes the famous French non-work ethic.

When Goodyear Tire & Rubber Co’s Amiens Nord plant faced being closed,  threatening 1,250 jobs, Paris attempted to mediate a sale to Illinois-based Titan International.  Unable to get the French unions to move on any of their conditions, Titan’s owner, Maurice Taylor (last seen running for the Republican presidential nomination in 1996), fired off his answer on any potential purchase:

“The French workforce gets paid high wages but works only three hours. They get one hour for breaks and lunch, talk for three and work for three,” Taylor wrote on February 8 in the letter in English addressed to the minister, Arnaud Montebourg.

“I told this to the French union workers to their faces. They told me that’s the French way!” Taylor added in the letter, which was posted by business daily Les Echos on its website on Wednesday and which the ministry confirmed was genuine.

“How stupid do you think we are?” he asked at one point.

“Titan is going to buy a Chinese tire company or an Indian one, pay less than one Euro per hour wage and ship all the tires France needs,” he said. “You can keep the so-called workers.”

Taylor’s jab on going to China or India has to chafe Arnaud Montebourg, France’s Minister of Industrial Renewal, whose industrial policy has thus far been to scapegoat low-wage competitors.  Montebourg even blocked Indian steelmaker ArcelorMittal from buying a French plant in 2012, apparently proving that beggers can be chosers.

Who needs employers?

Taylor’s brusque reply may dominate the headlines (who are we kidding with ‘may’?), but the real story is France slowly coming to terms with, well, their unemployment terms.

Despite the reputation of being exceptionally generous, which they are, France’s unemployment benefits are reaching fewer and fewer unemployed.  Even as unemployment has increased, the percentage of beneficiaries has decreased – 44.8% of those eligible receive benefits, down from 48.5% in 2009.  Many eligible are being turned away, a situation brought to greater public awareness when an eligible beneficiary set himself on fire in protest for being declined.

Why are even eligible beneficiaries being told ‘non’?  Because as the French government auditor, the Cour des comptes (think of it as the French CBO), recently stated, the system of benefits is “unsustainable”:

The current funding system is expected to reach a deficit of 5 billion in 2013. According to the Cour, the French system is largely to blame for the deficit, as it is much more generous than similar benefits programs in neighboring countries. For example, the current allocation is between 63 and 93 percent of the previous incomes of the unemployed. In addition, the minimum compensation length for unemployment benefits in France is two years, compared to one year in Germany.

Such debts helped France’s credit rating fall to AA1, despite President Hollande’s pledge to reduce the deficit by the end of 2013.  With familiar rhetoric coming from another left-leaning politician, it’s little wonder what Maurice Taylor chose to acknowledge in his letter:

Socialist President Francois Hollande may take some comfort in the view Taylor expressed of Washington: “The U.S. government is not much better than the French,” he wrote…

Meanwhile, From The Laboratories Of Democracy…

News flash:  States that govern according to conservative precepts – especially cutting taxes to spur growth – are doing better than “progressive” states.  Much, much better.  And yep, even government revenues benefit.

In the meantime, “closing the deficit” with taxes rather than growth is dragging “progressive” states down. And that’s presuming the tax hikes actually close the deficit, which is a dodgy proposition, given how tax hikes crush economic growth.

Question:  Which example do you suppose the MN DFL is emulating as they cackle madly over their word-processors today, cranking out bills by the pound?

Have Your Stored A Ton Of Cornmeal Yet?

Joe Doakes from Como Park emails:

The hype around the “fiscal cliff” reminds me of the hype around Y2K which supports my suspicion that’s all it is – hype.

If the GOP fails to cave in, we automatically enact the spending cuts adopted by John Kerry’s Super Committee and cut the monthly shortfall in half. We don’t cut the Budget in half, just the amount we’re Short each month.

We’ll still be spending ourselves into bankruptcy, only not as fast. That should be okay with Democrats, shouldn’t it? Incrementalism, and all that?

Joe Doakes

Como park

Like most of the Democrat (and DFL) agenda, it’s there to gull the gullible…

…and draw attention away from the real problem; the upcoming debt and entitlement crunches.

Hey, how about that upcoming royal baby?  Lindsay Lohan’s sex life?  X-Factor?

Anyone?

Revolution On Eternal Repeat

I’ve been a huge Dinesh D’Souza fan since I read his Reagan: How An Ordinary Man Became An Extraordinary President over a decade ago; it may have been the best Reagan bio ever.

And I got a chance to see 2016 over the weekend.  It didn’t disappoint:

The movie’s thesis is…

(Spoiler Alert: I’m going to talk spoilers below the jump, although to be fair I think much of what’s in the movie has been in the public domain; this is just the first high-profile place I’ve seen it all collected into one coherent thesis)

Continue reading

Lest We Forget

What does this chart represent?

No, it’s not the Brett Favre Media Bell Curve. It’s the comparison between:

  • Obama’s projected unemployment with Porkulus (Dark blue line)
  • Obama’s projected unemployment without Porkulus (Light blue line)
  • The actual unemployment rate (Red dots)

Question for all you Democrats; if Romney releases his tax returns, will those red dots merge with the blue line?

(Via Instapundit)

North Dakotans In The Mist

As I’ve noted over the years, I was born, grew up and went to college in North Dakota.  I left when I was 22 – largely because everything I really wanted to do with my life involved one kind of city or another.  At that time, “things I wanted to do with my life” mostly included “have a band and take a shot at making it in a city with a decent music scene” – but over time, everything else I ended up wanting to do tended to involve living in a major city as well.

In 1985, North Dakota was in pretty dire straits.  The state had a lot in common with Minneapolis and Saint Paul, back then; it was in the throes of the deflation of a huge real estate bubble, in this case a bubble in the price of farm land which had led an awful lot of farmers to over-borrow, which led to a huge wave of foreclosures when the bubble finally burst.  Foreclosures zoomed, unemployment soared, the whole US agriculture industry reeled (no state more than North Dakota, which was at the time more dependent on agriculture than any state in the union).  The farm crisis of the eighties took place in the fly-overiest of America’s flyover lands, and so left only a few marks on the larger American psyche – some good, some pretty awful.

The state learned a few lessons from the eighties (which also included a brief boom and long bust in the oil market; the Oil Embargo in the seventies caused a brief burst of drilling in the western part of the state, which led to some rapid expansion and equally rapid contraction when the price of oil dropped the below the point where North Dakota oil made economic sense).

Of course, times have changed in my home state.  The place is floating in oil, and money to boot.  And that money is going to a lot of things – and infrastructure isn’t as high on the list as some (MPR) seem to think it should be.  There’s method to the madness, of course; during the first oil boom, North Dakota built all kinds of infrastructure that wasn’t needed when the boom shriveled.  While this boom may not shrivel in the same way, the state also knows that there’s a pattern to oil booms; the first ten or twenty years is the Boomtown phase, with hordes of workers drilling exploratory rigs all over the place.  Once all the exploring is done, and things switch over to production mode?  There’s still lots of oil, jobs and money – but it’s not the same.  It’s steadier. And a lot of the “boom” will move on to the next boomtown, wherever that is.  And the infrastructure needs will be very different.

Still, it’s very different than when other NYTimes columnists were calling for the state to be evacuated and handed back to nature – the infamous “Buffalo Commons”.

Our nation’s idiot media “elite” have never known what to make of the place.

I bring it up because the New York Times is writing about North Dakota again.  Gail Collins, as trifling and meringue-y a columnist as Maureen Dowd,  h paid the state a visit recently, and wrote a column that TMZ might have rejected as too shallow and caricature-worthy:

Right now you are probably asking yourself: “What would it be like to live in a place with an unemployment rate of 1 percent?”

Me, too! So I went to Williston, N.D., to find out. There are certain things that journalists do as a public service because you, the noble reader, are probably not going to do them for yourself — like attending charter revision meetings or reading the autobiography of Tim Pawlenty.

Or take Gail Collins seriously.

But she gets a key fact straight; there are jobs out in oil country:

Going to Williston is sort of in this category. The people are lovely, but you’re talking about a two-hour drive from Minot.

If you did come, however, you would feel really, really wanted. Radio ads urged me to embark on a new career as a bank teller, laborer, railroad conductor or cake decorator. The local Walmart has a big sign up, begging passers-by to consider starting their lives anew in retail sales. The Bakken Region Recruiter lists openings in truck driving, winch operating and canal maintenance work, along with ads for a floral designer, bartender, public defender, loan officer, addiction counselor and sports reporter. All in an area where the big city has a population of around 16,000.

There’s an oil boom…Williston’s median income, which was under $30,000 when the serious drilling started, has jumped to well over $50,000 a year…“It’s a place of opportunity,” says E. Ward Koeser, the genial head of a local communications company who has also been Williston’s part-time mayor for the last 18 years. A waitress at a restaurant that Koeser patronizes recently told him that she made $400 in tips on a single night. “Although I’m sure that’s not the norm,” he added hastily.

(As someone who used to work in part for tips in ND, it sure isn’t.  I drove an airport van for a hotel.  You could always tell when someone visited from New York or LA; I’d get a $5 tip for driving and hauling the bags.  Minneapolis?  A couple of bucks.  North Dakotans?  Nothing.  Or a quarter.  And that was meant to be a good tip).

You are probably wondering about the downside.

Indeed, if you’re in the MSM, you’re obsessing about it.  This is wealth not bestowed by government; there just has to be a dark side to it all!

Obviously there has to be one, or you and I would already have moved to Williston, or at least taken up a collection to send unemployed college graduates.

We’ll come back to that.

You would expect that, as population and incomes rose, new stores, theaters and restaurants would follow. But, in Williston, they haven’t. Lanny Gabbert, a science teacher at the high school, says his students yearn for a mall where they could shop, “but the closest thing is Walmart.” The most ambitious restaurants would be classified under the heading of “casual dining,” and the fast food is not fast, given the lunchtime lines that can stretch out for 20 minutes or more. Neither retailers nor restaurateurs are interested in investing in a place where they have to compete with the oil fields to attract workers.

So the “downside” is that relatively great wealth hasn’t brought a Rodeo Drive to Williston.

OK, fair enough.  Let’s continue.

Housing costs in Williston, N.D., are approaching those in New York City. Many of the oil workers stash their families back wherever they came from, and live in “man camps,” some of which resemble giant stretches of storage units.

“The man camps — I call them the necessary evil,” said Koeser, who added, apologetically, “that’s a little derogatory.”

If the place you love can’t quite climb out of the recession, think of this as consolation. At least you’re not living in a man camp and waiting half an hour in line for a Big Mac.

Which is as excellent a metaphor for Obama’s America, the America of Planet Upper West Side, as there is; better to have amenities than a job – even a job in a place that may not be up the street from Fifth Avenue or the Mall of America.

Not-Obama America?   I know guys who wake up in West Saint Paul on Sunday morning, drive all day to Williston, make a ton of money, and drive home after work Thursday.  I know guys – my sister’s husband among ‘em – who spend two weeks driving a truck in oil country and a week at home, because it’s where the money is and a great way to blast that nest egg to the next level.  People who, by desire or by necessity, have taken the recession by the horns and done what needs to be done to keep themselves and their families not just above water, but in the black at a time when the likes of Gail Collins are sniveling about their friends’ brats who just graduated from Bard College with an art degree and somehow can’t find a job with a hedge fund.

(Via North Dakota’s official blogger, and my Mom’s neighbor, Rob Port)

Close Enough For Government Work

Joe Doakes from Como Park emails:

I always liked this quote from Stranger in a Strange Land:

“ . . . a politico-judicial decision unparalleled in jug-headedness since Doheny was acquitted of offering the bribe Secretary Fall was convicted of accepting.”

Well, unparalleled until [last Thursday].

United States Supreme Court upheld Obamacare requirement that everybody buy health insurance or pay a penalty on the grounds that although the law says it’s a penalty, it’s really a tax, and therefore Constitutional. But it’s not an actual tax because if it were, it would be unconstitutional. So it’s a tax, but not a tax.

Chief Justice Joseph Heller, writing in the majority…

And Minnesota Supreme Court upheld DWI convictions based on the Intoxilyzer breath test machine because the State showed that more likely than not the machine was accurate. You’re guilty beyond a reasonable doubt of .08 Or More because the .08 shown on the machine probably is correct.

And society’s downward spiral continues.

Joe Doakes

Como Park

“Because government says so and wants to” is becoming a binding precedent.

Slim Pickins

Joe Doakes from Como Park writes:

I went with my son-in-law looking at used cars this weekend. Have you seen the prices? Shockingly high. With incentives, rebates and interest rates, brand-new costs the same as used.

You do, indeed, pay a lot these days for that “pre-depreciated” option.

The used vehicle market seems to be distorted: there aren’t enough used vehicles so the scarcity has driven up demand and with it, price. It’s as if some giant vacuum cleaner sucked up millions of perfectly good used cars and crushed them to get them off the market. Weird.

My son-in-law can afford a replacement vehicle so I suppose that makes him a 1%-er. I have no idea how single mothers or low income minority families do it. The burden is falling on those least able to afford it. Good thing this isn’t the result of some well-intentioned Bush-era government program or there’d be Hell to pay.

Joe Doakes

Como Park

No kidding.

Because if an Administration were to make “imposing scarcity for a necessity – affordable transportation – on low-income Americans” a “first 100 days” priority, some might think that Administration didn’t have the good of this country’s poorest at heart.

That’d be just weird, woudln’t it?

Hollande Vacation

Hollande, looking sauced

Hollande, looking sauced

France goes on a holiday from financial reality and makes Sarkozy pack.

The future of the European Union (and worldwide markets) may hinge on the following question: Is François Hollande a “fool or a knave”?

Hollande, seeking to become France’s first Socialist President since François Mitterrand, won a narrow victory Sunday over Nicolas Sarkozy – ending the Fifth Republic’s brief and troubled flirtation with mildly conservative economic policies.  Hollande’s election was not only a victory for a Socialist Party in political disrepair but for his former domestic partner and 2007 Socialist nominee (remember, it’s France) Ségolène Royal.  Whether his win proves to be a defeat for the economics of the EU will have to wait to be seen.  As the UK’s Telegraph details, (having asked the above question about Hollande’s political motivations), France faces extraordinary fiscal challenges:

Today, the top corporate tax is 34.4 percent (compared to 15.8 percent in Germany) and France has a €96 billion budget shortfall, which caused it to lose its high credit rating. The absurd 35 hour week largely remains in effect. Here’s the most damning statistic: government spending now accounts of 56 percent of France’s GDP. It’s only higher in five other countries in the world – including Iraq and Cuba.

Keep in mind, these figures were after 5 years of Sarkozy’s supposedly “draconian” policies and political rule by his center-right Union pour un Mouvement Populaire (UMP).  Hollande, in theory, wants to undo the same policies through increased progressive taxation, including the creation of an additional 45% for income above 150,000 euros and capping tax loopholes at a maximum of €10,000 per year.

In an economic era defined by deficit spending and a general lack of funds, François Hollande seems intent to upend the Franco-German alliance that has sought to force austerity measures on the rest of the EU.  ”Germany doesn’t decide for all of Europe,” Hollande intoned during the campaign.  Yet what is the alternative?  A nation drowning in debt can no more spend it’s way solvent than a fat person can eat themselves thin.

Marine Le Pen should be proud.  The leader of the supposed ultra-conservative (more social nationalist) National Front and daughter of the 2002 run-off presidential candidate announced her intention to leave her ballot blank - a signal to the 18% who voted for her to ensure Sarkozy’s defeat.

Sarkozy would hardly be recognized as “conservative” across the Pond.  Three of his ministers were leftists.  He pushed for legislation to fight global warming.  He worked to help Socialist Dominique Strauss-Kahn become head of the IMF (when Straus-Kahn wasn’t trying to plow room service).  Far more damning, Sarkozy’s response to the 2008 economic meltdown was vintage Socialist – declaring that ”laissez-faire capitalism is over” and decrying “the dictatorship of the market.”  Yet, he raised the retirement age, cut taxes and attempted, unsuccessfully in the end, to ween France off the entitlement teat.

How the markets react may be the most important question in the aftermath of Hollande’s victory.  Coupled with the showing of Alexis Tsipras in Greece – whose policies mirror Hollande in a desire to tax the rich and delay debt repayments – the concern over the fate of he EU will renew Monday morning.  Greece had agreed to impose pension and wage cuts in return for two international rescues worth 240 billion euros.  Either the policy continues or the payments stop.  An end to payments would suggest an economic amputation from the Euro Zone, with Greece either leaving or being forced to abandon the Euro.  A Greek departure could easily start a domino effect in the EU and send worldwide markets into a tailspin.

Hollande may be forced to continue may of the policies he publicly campaigned against.  Short of a desire to commit economic suicide, he has little leverage to do otherwise.

Right To Work: A Time For Choosing

If there’s one issue where the GOP-led Legislature has dropped the ball this session, it’s in letting the “Right To Work” Amendment (henceforth RTW) proposal languish, apparently to die, in committee.

Rumor coming from the Legislature is that the leadership is afraid that the unions will dump a ton of money into Minnesota to fight legislators who support RTW.   The fact is that the unions are facing a full-court press, with RTW legislation or related campaigns (like the Walker recall) going on in more states than ever before; they’re playing whack-a-mole, and while they have a lot of extorted dues money to spend (just less than half on union members are Republicans; about 8% of unions’ political money goes to GOP candidates), they’re spread thinner than ever before; putting one more piece of legislation out there will spread them thinner.

It’s not like the unions aren’t going to go after swing-y candidates in Minnesota – they already co-own the DFL along with Alita Messinger, and they will conduct a merciless, no-holds-barred, no-boundaries-respected smear campaign of every Republican in this state no matter what’s on the ballot this year.  And in a year or two or three?  The DFL and unions will have re-filled their coffers, and have many, many fewer challenges to deal with, for better or worse.

So if not now, when?  If not here, where?

The fact is, according to sources on Capitol Hill, we are three votes shy of passing this thing, and there are six GOP Senate holdouts. 

Leadership can do something about this. I’m going to urge you to contact the leadership of the House and Senate:

  • Rep. Kurt Zellers – Speaker of the House (rep.kurt.zellers@house.mn / 651-296-5502)
  • Sen. David Senjem – Senate Majority Leader (sen.david.senjem@senate.mn / 651.296.3903)

Tell them – politely but firmly – that 2/3 of the people in Minnesota, including liberals, including union members, support this legislation.  And so do you.  And you’re a voter.

Later this week, we’ll start talking about the reported holdouts.

 

While The DFL Is Busy Defending ID-Free Voting…

…the GOP is focused on jobs.

The “MNGOP’s “Reform 2.0″ agenda moved forward yesterday with the passage of the “Tax Relief And Job Creation Act”, which passed in the House.

I wish every working Minnesotan could see this bit from yesterday – Rep. Matt Dean tearing chunks out of Ann Lenczewski, who’d just finished demigogueing against the bill:

Pass it around.

This is going to come up in the Senate soon. And while it’s not as sexy and sound-biteable as the Marriage Amendment or Voter ID, it’s much more important for Minnesota’s long-term future, especially for the parts of Minnesota that actually work.

We’ll keep you posted.

That “We The People” Thing

Janet Dailey, writing in the Telegraph, notes British Minister of the Exchequer George Osborne’s visit to the US, along with Prime Minister David Cameron.

“George who, minister of what?”

George Osborne.  The “Minister of the Exchequer” is what they call their “Secretary of the Treasury” over there.

Anyway, Dailey – who is a center-right columnist at the center-right Telegraph (yaaay, Europe, for at least having a journo culture that’s honest about its biases!),  notes something that eludes our entire media and one, and sometimes both, of America’s major poitical parties:

This brings me to my original theme: why America’s recovery – which will eventually come, as night follows day – cannot be an instantly usable model for a British one, which is not inevitable. It is not federal governments that bring about economic revival in America: it is the country’s people.

From Daily’s pen to God’s ears.

John McCain got pounded by the media and America’s Stupid Class for saying, in 2008, that the fundamentals of the American economy were strong.  As wrong as he was, and is, on so many issues, he had that one as right as anyone ever has.

Because the only relationship our economy has with our government is a negative one.  Government action inevitably harms the economy (in the long run, if usually but not always the short).  It’s only when government butts out that it does no harm, which is the best it can do.

Even Franklin Roosevelt’s New Deal has finally been demythologised. All those works projects and federal programmes may have done something for national morale, but the hard economic evidence shows that the worst effects of the 1929 crash had begun to abate under Herbert Hoover, and that the Great Depression (which was arguably prolonged by FDR’s policies) did not properly end until the US entered the Second World War.

That’s the elephant in the American economic room.

We’ve got four generations of economists, now, who pay obeisance to the flawed notion that Keynesianism worked, once.

It’s wrong, of course; as Dailey notes, it was a morale booster that arguably did more harm than good, and certainly prolonged the period of extended private unemployment.

No – America’s nine economic lives come from its private sector.

Read Dailey’s entire piece.

Send it to a liberal friend.  Make a liberal friend to send it to, if you need to.

This Is Your “Obama Recovery”

The Dems are crowing about the drop in unemployment numbers.

But if you look a little further into the numbers, you see that the American job market is not better off than it was four years ago.  Indeed, it’s a lot worse.

On Inauguration Day in 2009, when Barack Obama took office, the unemployment rate was 7.8 percent (up from 4.4% as recently as May of 2007).  Notwithstanding his promises that Porkulus would cap unemployment at 8.5%, it soared to 10% in October of 2009, and didn’t dip down below 9% in any sustained way until last fall.  Last month, after three years of Obama, it was at 8.3% – or .2% lower than where he said it’d never get above if we spent what he proposed.

That’s bad.

“But 8.3% is better than 10%, right?”

Sure – if all you’re doing is comparing numbers straight-up.  But by itself, the unemployment rate is meaningless.  It’s a percentage of people out of work – but who are those people?  They are the ones that are participating in the labor market.

And fewer Americans than ever -ever! – are doing that!

So let’s figure the actual percentage of Americans working, overall.

January 2009: According to the Bureau of Labor Statistics, the Workforce Participation rate when Obama took office was 65.7%.  That means 34.3% of the workforce wasn’t even trying to participate, through discouragement, disability or whatever case.  Add to that the 7.8% unemployed, and you reach a figure of 57.1% of the American workforce actually working.

October 2009:  At this point, the “low point” of the Obama recession, the participation rate was an even 65% just in time for unemployment to hit an even 10%.,  55% of the American work force was working.

January, 2012:  As unemployment stood at 8.3%, the workforce participation rate was 63.7% – the lowest since records have been kept.  That means that overall employment in the American workforce is now a whopping…

…55.2%.

That’s a fifth of a percent higher than it was at the lowest point of the Obama recession.

Almost two full points lower than it was when Barack Obama took office. 

(And five full points lower than June of 2003, the worst month of George W. Bush’s before the GOP lost the Congress.  That’s five percent lower employment overall.  Six and change if you take one of Bush’s better months.  And I know, Bush benefitted from a bubble, yadda yadda.  But…five points!).

The media is spinning nonstop about the “Obama recovery”.  It’s vapor; in terms of percentage of the American workforce actually working, there is no recovery.

Are you better off than you were four years ago, America?  No – you’re doing two percent worse.

The World Tax is Flat

Ask yourself, tax code, do you feel lucky? Do ya, punk?

 Rick Perry stabs the tax system in the heart.  But under the plan, is it dead or simply pining for the fjords?

Steve Forbes must feel like he’s stepped into a time machine.

The 1996 & 2000 GOP presidential candidate briefly electrified the denizens of political wonkdom with his conception of a national flat tax to simplify – and eliminate – the current overcomplicated tax code over 15 years ago.  Forbes’ idea of broadening the tax base while reducing the individual tax burden proved a temporary hit – too much of one as most of his 1996 rivals embraced similar policies.  Unfortunately for flat tax advocates, the only candidate who didn’t rush towards the concept was nominee Bob Dole, and since then the tax as languished as more theory than practice despite its success in many former Soviet bloc countries.

That is until now, as Texas Governor Rick Perry has revived the concept, winning Forbes’ praise and liberal scorn.  The headlines have screamed about Perry’s new tax rate of 20%, but in most reports, the lead has been buried:

“The plan starts with giving Americans a choice between a new, flat tax rate of 20 percent or their current income tax rate,” Perry writes. “The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents.”

 

The plan also drops the corporate tax rate to 20 percent and will temporarily lower the rate to 5.25 percent to promote companies working overseas to move to the U.S. along with implementing a “territorial tax system,” which will  tax in-country income.

 

The plan will eliminate the death tax and end taxes on Social Security, which would help an estimated 17 million Americans receiving benefits today. It would also cut taxes on qualified dividends and long-term capital gains.

The drop in corporate tax rate would put the U.S. as the lowest in the world (among major competitors; there are a number of nations with no corporate taxes).  And with most foreign economies unable or unwilling to respond in-kind with similar corporate tax rate cuts, the U.S. could be looking at an immediate repatriation of up to $1.4 trillion with the addition of a “territorial tax.”  Does that mean an immediate increase in jobs?  Not exactly, but a similar “repatriation holiday” for overseas corporations in 2004 spurred massive investments in capital and employment.

Lost in the corporate tax discussion has been Perry’s proposal to cap federal spending to 18% of GDP, or what would be roughly $2.54 trillion.  That’s under the projected 2012 revenues of $2.627 trillion and significantly under the Obama adminstration’s desired $3.729 trillion of spending.  Perry is obviously expecting that projected $1.4 trillion to soften the blow as increased income would (hopefully) spur GDP growth, raising Perry’s 18% beyond projected 2012 revenue levels.

The chief compliants from the right, much like with Herman Cain’s “999″ plan, are that Perry’s flat tax doesn’t go far enough.  Indeed, both leading economic fixes from the GOP field disembowel the current tax system but keep it wrapped together in some fiscal Eraserhead policy nightmare.  Both Cain and Perry’s proposals have foreign models to work from – Cain’s VATesque vision which has hindered Europe; Perry’s opt-out Hong Kong-like system which has worked well despite the complication of individuals being potentially able to switch back-and-forth from flat tax to the current system year to year.

Ultimately, Perry’s flat tax needs to be seen as the beginning of a new policy discussion, rather than as a destination.  A total overhaul of the tax code, while popular in spirit, likely polls poorly when the roughly 47% of Americans who don’t pay federal taxes figure out they might be forced to actually contribute to the system.  As proposed, few Americans will find themselves benefiting from the policy, but I think critics are thinking too short term and too little on the potential corporate effects of the plan.

It’s Not Just For Cities, Public Employee Unions And Spoiled Toddlers Anymore

Keith at Redneck Crackers And Beer wonders if  Delta Airlines has just been messing with us:.

I posted back in July that the Essential Air Service program was out of date, needed to be repealed, and cost the tax payers millions of dollars.

This is the government subsidy program that keeps airlines flying to cities that otherwise couldn’t support airline service on their own.

With the news that the program was on the chopping block, Delta announced – as they frequently do – that they’d have to start cutting service to these cities.

Whaddya suppose happened next?

 Just out of curiosity I checked Delta’s website recently and noticed that only a few of these towns have been dropped and several have picked up regional jet service who only had turboprop service previously.

Huh.

So the question is, was Delta just playing the people in these small towns to lobby their congress-critters to pass the EAS bill to keep the pork rolling in to places that can’t afford commercial air service, and want the rest of us to pay for it?

Why not?

The tactic – “keep paying us for something that people won’t pay for, or at least pay as much for – naturally on their own”  - is as predictable as every play in the Vikings playbook.  Every school district and Local-Government-Aid-accepting city in Minnesota does it every year at budget time; “keep the swag coming, or we’re going to have to cut you off!”

An Experiment

While at the “Occupy Minnesota” “rally” over the weekend, I saw a few signs saying that “Labor Creates Wealth”.

Now, I’ve got nothing against labor.  I work for a living; without someone to build things to sell, capital and management will be more or less out to dry.

But does labor create wealth?

For those of you who believe this, I’m going to propose an experiment.

  1. Do some work.  Any work at all.  Dig a ditch, draw a painting, ride a bike from downtown to downtown, bake a tray of cookies, write a blog post, play guitar in the skyway, build a dog house, make your bed, it doesn’t matter.  Just do some…labor.
  2. Check to see if you have gotten any “wealth” – money, food, lodging, coffee beans, green stamps, trading cards, coupons, strings of beads – by simple dint of having labored.

 I’m guessing “no”.  And without wanting to spoil the experiment, I’m going to speculate on exactly why. 

Without someone willing to pay you something for that “labor”, the “labor” you did in #1 above was just something you did for fun (hopefully; I mean, you didn’t really expect to be paid, did you?)

And who is it that finds someone who needs, and is willing to pay for, a ditch or a drawing or for you to ride your bike, or is hungry for cookies or your insight or your music, or needs a dog house?

Management.

Now, you could very well be your own manager – it happens all the time.

And unless you dig with your hands, draw with your blood, inherited a bike, conjure flour and sugar and chocolate chips and butter and heat from pure mind power, can ethically blog from the library, imitate a guitar with your voice, or pound nails with your face, someone needs to “invest” in a shovel, a pencil, a bike, ingredients and a stove and gas, a computer, a guitar, and a hammer and some wood, in the hopes that they’ll generate a “return” on the investment – money or food or lodging or whatever you get for your labor.  Again – you could be the investor!   But without someone – you, your mom, a venture capitalist, or a bank listed on the NYSE – to “invest” in making sure you have the tools you need to make sure your labor produces something to take to market, you’ll be, well, pounding nails with your face, as it were.

It’s called “Capital”.

Just Good Neighbors

Joe Doakes from Como Park writes that the group “occupying” the square at Henco Gov’t Center tomorrow will be running rampant:

Well, not rampant. The County will provide portable toilets and bike racks. Alcohol is banned, smoking is allowed on sidewalks only, tents are still being negotiated.

These people fancy themselves the heirs to Kent State or Tiananmen Square – rebels, risking all sticking it to The Man. They might as well be Kiwanis.

Joe Doakes

Como Park

Or, y’know, Republicans.

Our Dumb Counterculture

First things first:  Pardon the fact that I’m linking to Infowars.

But this was just too good to miss:  the “Occupy Wall Street” protesters are truly, truly stupid people:

The zeal for totalitarian government amongst some of the “protesters” is shocking. One sign being carried around read, “A government is an entity which holds the monopolistic right to initiate force,” which seems a little ironic when protesters complain about being physically assaulted by police in the same breath.

One woman interviewed by Kokesh also announces her intention to help Obama to capture a second term. How can a self-proclaimed Occupy Wall Street protester simultaneously support the man whose 2008 campaign was bankrolled by Wall Street, whose 2012 campaign is reliant on Wall Street to an even greater extent, and whose cabinet was filled with Wall Street operatives?

My favorite moment – where by “favorite” I mean “scares the crap out of me” – is the nebbishy little product of, no doubt, an exquisitely expensive post-secondary education at 1:45:   “There are certain things called civil liberties which are limitations on democracy”.

Playing The Administration’s Tune

Gibson Musical Instrument Corp. CEO Henry Juszkiewicz will be at President Obama’s “Jobs” speech tonight, to remind His Excellency and the assembled, adoring media that the Administration’s politicized, idiotic policies – enforcing an arcane Indian law - are going to cost the company millions of dollars, and if followed through will cost the Nashville area 40 skilled, high-paying manufacturing jobs.

Close-up of the new re-issue "Eric Clapton 1960 Les Paul". Hint, Santa.

In solidarity with Gibson, I’ll supply them some free advertising.

Indian Freaking Rosewood, Administration Byatches!

I do endorse Gibson guitars (although, to be fair, most guitar players do – even lifelong Fender guys like me; I finally took the plunge on a Gibson product last year, and yeah, it’s niiiice).

Oooh - Gibson provides jobs all over the world!

Gateway Pundit writes:

Gibson CEO Henry Juszkiewicz told reporters today that the federal raid on the popular American guitar maker will cost the company $10,000,000. Juszkiewicz also said that he will attend Obama’s big spending jobs speech tomorrow in Washington DC.

Is that a gorgeous piece of work or what? It sounds even better than it looks. And guess what? Yep - made in the USA. One of those "American Manufacturing Jobs" that lefties are constantly barbering about. Outsource this? Why not outsource guarding the Tomb of the Unknowns to the Pakistani military, while you're at it?

Attorney General Eric Holder said the raid on the Gibson was not political.

And if you believe Holder you are an idiot here’s an excellent Fox News clip summing up the entire story so far.

Remember – the CEO of Martin guitars (sorry – while they make gorgeous guitars, and I also own a Martin product, they get no free ads from me), which builds guitars out of exactly the same Indian-grown, American-finished rosewood as Gibson, which is not illegal under US law and only vaguely-sanctioned under Indian law, is a big Democrat contributor.

A Gibson ES335. A favorite of both jazz musicians and loud rockers who like the ES' excellent feedback characteristics.

Of course, Gibson is just one of many such stories – companies being harried, money being confiscated, jobs being destroyed by our rapacious, power-mad bureaucracy.

Yep, there's parts, too. This is a Gibspon "Soap Bar". I have one sunk into the middle position of my Fender Jazz, wired out of phase with the bridge pickup; when they play together, it sounds more like Mark Knopfler's Strat (think "Sultans of Swing") than Mark Knopfler's Strat does.

I’m working to get Mr. Juskiewicz on the Northern Alliance one of these next few weekends.  Keep your fingers crossed; if you’re a fan of limited government or music, it’ll be a great chat.

Obama’s Jobs Program: Eliminate Private Union Jobs

As we head into America’s annual “Labor Day” holiday, it’s worth asking – all you organized labor members in the private sector, what on earth do you think the government is telling you?

This morning, the AFL-CIO released this statement to the press:

AT&T Will Return 5,000 Jobs to U.S. on Completion of AT&T/T-Mobile Merger 

Company Commits to No Job Losses for Call Center Workers at AT&T Mobility, T-Mobile 

Washington, D.C. — AT&T’s announcement that it will bring back a net 5,000 quality wireless jobs to the United States following the completion of its merger with T-Mobile USA is very good news.

“These jobs will provide quality wages and benefits and good working conditions for U.S. workers — exactly what’s needed to help turn around our struggling economy.  Instead of sitting on more than $2 trillion in assets and sending jobs overseas while millions of Americans are out of work, working people are looking for U.S. employers to follow AT&T’s lead.  If more employers took this kind of action, we could begin to move our economy forward and strengthen the middle class,” said AFL-CIO President Richard Trumka.

AT&T’s commitment that the T-Mobile merger will not result in any job losses for current call center workers at AT&T Mobility or T-Mobile USA is more evidence of the kind of corporate responsibility we need here in the United States, Trumka said.

CWA President Larry Cohen pointed out that “cuts in wages, benefits, and jobs have become the new normal in America, so that when a company like AT&T takes action to bring back quality jobs, it’s big news.”

In addition to restoring a net 5,000 quality jobs and a commitment that no job losses will occur for U.S. call center workers at either company, the merger has additional positive gains for workers, consumers, communities and the industry.

  • It will accelerate the buildout of high-speed wireless broadband to 97 percent of the nation, enabling an additional 55 million people, especially in rural and underserved areas, to share in the benefits of Internet technology.
  • AT&T will develop T-Mobile’s assets and offer T-Mobile customers the latest in technology.
  • AT&T and T-Mobile utilize compatible technologies.
  • AT&T has a demonstrated commitment to workers’ rights, supporting management neutrality that enables workers to make a free and fair choice about union representation and bargaining rights.

That’s jobs, people!  Not just “living-wage” and “shovel-ready”, but good, solid, technical jobs with real skills and long-term potential – not the “shovel-ready” govenment make-work jobs the Administration and the public employee unions are babbling about.  The kind of jobs you can raise a family, build a career and support a community on!

And so what did the Administration do?

Joined up with Al Franken, and kicked you all, every one of you private-sector union employees, straight in the teeth:

The Department of Justice today filed a civil antitrust lawsuit to block AT&T Inc.’s proposed acquisition of T-Mobile USA Inc. The department said that the proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.

The department’s lawsuit, filed in U.S. District Court for the District of Columbia, seeks to prevent AT&T from acquiring T-Mobile from Deutsche Telekom AG.

“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

So there you go, unions; after you spent tens of millions of your dues on getting Obama and Franken elected, what do you get?  Screwed – in favor of a bunch of nutroots whose only agenda is controlling all alternative media!

So whatdya think about that?

Feeling – what’s the word I’m looking for…

…betrayed?

UPDATE:  The CWA is not amused.

The decision by the U.S. Department of Justice to seek to block the merger of AT&T and T-Mobile USA is simply wrong.

In today’s sinking economy, where millions of Americans are looking for work, the DOJ has filed suit to block a merger that will create as many as 96,000 quality jobs. In the U.S., where too many Americans, especially in rural areas, don’t have access to the tools of Internet technology, the DOJ is looking to block a plan to build out high speed wireless access to 97 percent of the country.

In a nation where workers’ rights are routinely violated, as occurs everyday at T-Mobile, the DOJ apparently believes that workers should be on their own instead of having a fair choice about union representation.

The DOJ’s action would put good jobs and workers’ rights at the bottom of the government’s priorities. Just yesterday, AT&T announced that it would return a net 5,000 jobs to the U.S. on completion of the merger. That is the kind of corporate responsibility that more employers in the U.S. should demonstrate if we are ever to have an economic recovery.

Instead of acting to block this merger, our government should be looking to support companies that create, keep and return good jobs to the United States.

They spent millions electing Democrats, and all they got was those lousy, usually awful-colored and ill-fitting, slogan t-shirts.

The Money Pit

George Will notes what many upper-Midwest conservatives have been saying since February; the left went all-in on Wisconsin because if they can lose there, they can lose any and everywhere.

I’ll start with Will’s conclusion:

As the moonless night of fa$ci$m descends on America’s dairyland, sidewalk graffiti next to the statehouse-square drinking fountain darkly warns: “Free water . . . for now.” There, succinctly, is liberalism’s credo: If everything isn’t “free,” meaning paid for by someone else, nothing will be safe.

That’s the crux of it all, really – but it wasn’t what the Wisconsin flap was about.

In fact, you could be forgiven for watching the American left this past seven months and having no idea what it was all about:

During the recall tumult, unions barely mentioned either their supposed grievance about collective bargaining, or their real fears, which concern money, particularly political money. Teachers unions can no longer bargain to require school districts to purchase teachers’ health insurance from the union’s preferred provider, which is especially expensive. This is saving millions of dollars and reducing teacher layoffs. Also, unions must hold annual recertification votes.

And teachers unions may no longer automatically deduct dues from members’ paychecks. After Colorado in 2001 required public employees unions to have annual votes reauthorizing collection of dues, membership in the Colorado Association of Public Employees declined 70 percent. In 2005, Indiana stopped collecting dues from unionized public employees; in 2011, there are 90 percent fewer dues-paying members. In Utah, the end of automatic dues deductions for political activities in 2001 caused teachers’ payments to fall 90 percent. After a similar law passed in 1992 in Washington state, the percentage of teachers making such contributions declined from 82 to 11.

Democrats furiously oppose Walker because public employees unions are transmission belts, conveying money to the Democratic Party. Last year, $11.2 million in union dues was withheld from paychecks of Wisconsin’s executive branch employees and $2.6 million from paychecks at the university across the lake. Having spent improvidently on the recall elections, the Wisconsin Education Association Council, the teachers union, is firing 40 percent of its staff.

Progressives want to recall Walker next year. Republicans hope they try. Wisconsin seems weary of attempts to overturn elections, and surely Obama does not want his allies squandering political money and the public’s patience. Since 1960, no Democrat has been elected president without carrying Wisconsin.

Will – or the copy editor that wrote his headline, anyway – uses the “Waterloo” metaphor; a defeat that makes further victories impossible (until some sort of radical game-changer):

Walker has refuted the left’s sustaining conviction that a leftward-clicking ratchet guarantees that liberalism’s advances are irreversible. Progressives, eager to discern a victory hidden in their recent failures, suggest that a chastened Walker will not risk further conservatism. Actually, however, his agenda includes another clash with teachers unions over accountability and school choice, and combat over tort reform with another cohort parasitic off bad public policies — trial lawyers.

I can hardly wait for the next session – on both sides of the Saint Croix.

Consequences

Illinois, which jacked up taxes (making Mark Dayton all green with envy) last January, has seen its unemployment rate rise...:

Illinois lost more jobs during the month of July than any other state in the nation, according to the most recent Bureau of Labor Statistics report. After losing 7,200 jobs in June, Illinois lost an additional 24,900 non-farm payroll jobs in July.

I tweeted about this last night.  Someone said “but what about as a percent of population!”, they responded with a rhetorical smirk.

Premature, naturally (emphasis added):

The report also said Illinois’s unemployment rate climbed to 9.5 percent. This marks the third consecutive month of increases in the unemployment rate.

Illinois started to create jobs as the national economy began to recover. But just when Illinois’s economy seemed to be turning around, lawmakers passed record tax increases in January of this year. Since then, Illinois’s employment numbers have done nothing but decline.

And for states that reduce taxes?

Well, what do you think?

The Yapping

Poor “Progressives”.

They can’t win elections.  Their politicians can’t do budgets (or, if they do, can never, ever make them work.  Even with years of unfettered control (from 2008 through 2010),  they can’t do anything useful with the economy.

And now even their protests suck:.

“We’re trying to find a caddy,” said a protester posing as Boehner. The Boehner impersonator stood beside impersonators of Minnesota Reps. Michele Bachmann, Erik Paulsen, Chip Cravaack and John Kline.

The “impersonators” were actually people wearing large cardboard cutouts of unflattering photos of the various politicians’ heads, looking like they were cut out from “Dump Bachmann” and blown up.  After eight years of constant caterwauling, they can’t even muster the energy to do those annoying papier-mache puppets anymore.

Cravaack wryly noted…:

“The people that we were speaking with were the job creators. They’re the people who employ Minnesotans,” Cravaack said of the attendees. “So we’re asking the question to them, ‘What is it going to take for you to invest in yourselves and create jobs?’”

He added that businesses are skittish about making that investment with the threat of new taxes and regulations from the Obama administration.

“Taxing companies right now in a recession is not going to create jobs,” Cravaack said. “It’s going to take jobs away.”

But to the progressive worldview, it’s government’s job to create jobs.

How?

By hiring lots of people who’ve never used shovels for a living for “shovel-ready” jobs? (What the hell is a “shovel-ready” job?  Outside of patching streets, what job in the world today actually uses shovels?)

By waving the magic government wand, perhaps?

They can’t even think of original chanting points:

Protesters accused the Minnesota congressmen of meeting with wealthy donors while proposing cuts to the middle class and not creating jobs. One sign read “People before profits,” and the crowd chanted “Hey-hey-ho-ho, corporate greed has got to go.”

Criminy – even Saul Alinsky is rolling in his grave.

Shelly Moore: “I BLEEEEEEEEEEEEED LIES!”

Shelly Moore – the Dwight Schrute of Wisconsin politics – lies so blatantly, even the left-leaning Politifact can’t help but notice.  One of Moore’s recent flyers drew Politifact’s attention:

For one, Moore plays loose in stating the impact of Ryan’s Medicare proposal. At one point, her flier says it would “eliminate Medicare as we know it.” In another, it says the plan would “end” Medicare.

For those who turn 65 before 2022, the program would not change. And for the others, Medicare would change dramatically but it would still exist, PolitiFact Wisconsin noted in ruling False a MoveOn.org claim that Medicare would be abolished in 10 years.

And best of all, her flyer misquotes an actual person:

And, last but not least, we called the woman pictured under the flier’s headline: “Lyda Haskins of River Falls Can’t Afford For Medicare to End.”

Haskins, 85, told us that she would have no trouble without Medicare even if it were taken from her — which it would not be, under the plan.

“It’s laughable that I wouldn’t be able to afford it,” Haskins said. “They should have not have done that.”

Haskins, whose daughter Alison Page ran unsuccessfully against Harsdorf in 2008, is well known in the area.

Haskins said she was not told her name would be used, and was not aware that Medicare would be an issue in the direct mail piece. She said she agreed, along with her grandchildren, only to be pictured generically as a Moore supporter.

Which earns Moore an unplaudit:

The flier’s claims are false, barring new information, and the misleading nature of the presentation pushes this into ridiculous territory.

That’s a Pants on Fire.

If you live in the greater Hudson / St. Croix River area, you have a chance today – to help continue saving Wisconsin from its ruinous, California-like fixation on spending, and from forcing the private sector to work ’til it’s 72 so the unions can retire at 55.

While this blog doesn’t do endorsements, I’m just going to say vote early and often for Harsdorf.