Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

06 February 2009

"Yeah. I don't want to cure anybody here. They all deserve to have whatever they have."

That quote is taken from Pete's Dragon, a 1977 Walt Disney movie. In the movie is Doc Terminus, a "salesman" who isn't all that he appears, as he peddles his powerless "cures" onto the town's pliable population. It's a timely quote because it sums up what your government thinks of you.

While the President puts on his best Doc Terminus impression and members on Congress struggle hard to find a middle ground, I think it would help us, the ones who will be paying for all of this, to reflect on what came of the first bailout:
The Bush administration overpaid tens of billions of dollars for stocks and other assets in its massive bailout last year of Wall Street banks and financial institutions, a new study by a government watchdog says.

The Congressional Oversight Panel, in a report released Friday, said last year's overpayments amounted to a taxpayer-financed $78 billion subsidy of the firms.

But this is the Obama administration and the Democrats have the majority in Congress. Hope! Change!

Mmm hmm. Would you like some snake oil with that hope and change?

But I do have to agree with the good Doc ... neither Congress nor this President wants to cure us; they only want to expand on their wealth and power. If we allow them to push through this "economic stimulus recovery", then we deserve to have whatever we have.

04 February 2009

Obama Economic Plan - Quote Of The Day

Maybe you've heard that President Obama's economic recovery plan now tops more than $900 billion. To help you grasp how much that is, here is a quote from Temple University math professor and author John Allen Paulos:
A million dollars a day for 2,000 years is only three-quarters of a trillion dollars. It's a big number no matter how you slice it. A million seconds is about 11½ days. A billion seconds is about 32 years, and a trillion seconds is 32,000 years. People tend to lump them together, perhaps because they rhyme, but if you think of it in terms of a jail sentence, do you want to go to jail for 11½ days or 32 years or maybe 32,000 years? So, they're vastly different, and people generally don't really have a real visceral grasp of the differences among them.

Let's look at that again ... a trillion seconds equals 32,000 years. That is the jail sentence that the President wants to impose on us, the American people.

Let that sink in for a moment. Then get mad that your government wants to make us foot this monsterous bill for something that more than likely isn't necessary and won't work.

06 May 2008

Our Tax System Explained: Bar Stool Economics

DISCLAIMER: This post is borrowed from a viral e-mail I received from a good friend today. And by borrowed, I mean plagiarized. Enjoy.

Ten men went out for beer and the bill for all ten came to $100. They agreed to pay their bill in the following way:
  • The first four men (the poorest) paid nothing.
  • The fifth paid $1.
  • The sixth paid $3.
  • The seventh paid $7.
  • The eighth paid $12.
  • The ninth paid $18.
  • The tenth man (the richest) paid $59.
The ten men drank in the same bar every day and seemed quite happy with the arrangement. Then, one day, they were approached by the owner of the bar.

"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20. Drinks for the ten of you will now cost just $80."

Since it was such a wonderful arrangement, the men still wanted to pay their bill in the same manner they always had. So how could they divide the $20 windfall so that everyone would get his fair share? They realized that $20 divided by ten is $2. But if they subtracted that from everybody's share, then the first four men, the fifth man, and the sixth man would all end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. It worked out like this:
  • The first four men were unaffected. They would still drink for free.
  • The fifth man, like the first four, now paid nothing (100% savings).
  • The sixth now paid $2 instead of $3 (33%savings).
  • The seventh now pay $5 instead of $7 (28%savings).
  • The eighth now paid $9 instead of $12 (25% savings).
  • The ninth now paid $14 instead of $18 (22% savings).
  • The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the $20," declared the sixth man as he pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I got!"

"'That's true!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!"

"'Wait a minute," yelled the first four men in unison. "We didn't get anything at all. This system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start doing business overseas where the atmosphere is somewhat friendlier.

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.