Category Archives: Economy

Cost Of Socialism

So the revised cost of the border wall, before Trump works on getting it lower, is now $21.6 Billion. Up from $15 Billion. At this “cost,” that comes to $173 per household. Up from $120. OK fine. Where do I send my check?
 
That is far less than the $113 Billion a year we are paying now to sustain illegal aliens already here. And that translates to $904, per year per household.
 
The financial burden on education, health care, infrastructure, prisons, jobs and unemployment is not the only cost. That $113 Billion does not count the people illegals have killed, raped, robbed, and assaulted. That is the social cost you can’t put a price on.
 
Kudos to President Trump for doing what he said he would do. Enforce the law. Like he’s been doing since he was inaugurated.

You can’t blame Mexicans to want to escape their country, where the average wage is $4 per day. Venezuelans and Chinese are also flocking to enter the United States, legally.

Why is that?  Corruption isn’t the only reason Mexico is in sorry shape. It’s their quasi-socialist economic system. It doesn’t sustain, it doesn’t work. Mexico, like Venezuela, is rich in natural resources, like oil. Nothing a little capitalism can’t fix. What else can explain why the disparity on one side of the border is so great?

Mexicans are not happy with their government and the corruption in it. Mexican President Enrique Peña Nieto’s approval rating is 12%. But it’s their problem to fix.

Cost Per Household?

Who knew that Senate Majority Leader Mitch McConnell was a numbers guy? He figured out that the U.S.-Mexico border barrier that President Trump ordered this week could cost a projected $15 billion, once. That translates to $120 per household, based on the latest Census date of U.S. households.

Here is another number that Majority Leader McConnell should be concerned with. How much are illegal aliens already here costing U.S. households? That is $113 Billion. And that translates to  $904, per year per household.

But the pressure on education, health care, infrastructure, prisons, jobs and unemployment are not the only cost. That $113 Billion does not count the people illegals have killed, raped, robbed, and assaulted. All preventable crimes if the border were secure. Can Sen. McConnell put a price on that? Is Sen. McConnell suggesting that Mexico reimburse the U.S. $113 Billion per year?

Let’s see, a one-time charge of $120 or an annual charge of $904. Where do I send my check?

Granted, even after the border is as secure as possible, and the welcome mat for illegals has been pulled, that $904 number won’t go away in the short term. Once illegal immigration is no longer an issue, it will in the long term.

I know President Trump ran on Mexico paying for it. His bravado. That would be nice. But not necessary. Mexico pays for the wall that they have on their southern border. For as little as it would cost to build, just do it already.

Mexico will “pay” for it in other ways. Like by having to deal with their own unhappy people instead of shooing them here, across the border, and transporting them from their southern border to our southern border, only to send remittances back.

Remittances used to be Mexico’s second highest source of income. Second only to oil. With crude oil prices dropping, remittances are now their highest source of income.  And that amounts to $2 Billion per month leaving the U.S. economy. That’s how illegals “contribute” to our economy. Kind of like how multi-national corporations “contribute” to the economy by sheltering their assets from the onerous tax code.

The bold truth is, the U.S. is not Mexico’s welfare department. And the U.S. isn’t here to be their auxiliary country because of the corruption in their government and the drug cartels. A secure border would not only help keep Americans safer, but it might be the wake-up call Mexico needs to clean up their act.

And on that “big beautiful wall, with a great big door,” post a sign on the south side of the door.  “Para ingresar a los Estados Unidos, diríjase al consulado más cercano. Ellos están ahí para ayudarte. – For entry into the United States, please go to the nearest consulate. They are there to help you.”

Link: Trump’s wall could cost an estimated $120 per US household  |  The Bank of Mexico says money sent home by Mexicans overtaking oil revenues as a source of foreign income for the first time  |  HOW MEXICO FACILITATES ILLEGAL IMMIGRATION

How Is The FairTax Fair?

Glad you asked. Actually, a FB buddy, John Ingraham Berry said, and asked:

Burdensome on those families and individuals who have very little… have a little trouble grasping and seeing the fairness of this concept.

It’s really very easy, especially on the poor. Once you understand what’s in the bill, it’s like a ‘slap yourself in the head’ brilliant concept. For lack of any media excitement or mediocre coverage of the FairTax, getting people to learn what’s in the bill, as opposed to what the establishment says about it, which is pure demagoguery, is the biggest challenge.

Under every circumstance EXCEPT the FairTax, a consumption tax is regressive. By percentage of income, it hurts the poor the worst. The FairTax doesn’t do that. It is progressive in a way that benefits the poor the most, as you will see below.

Here’s the short version.

1.) Everything everyone (poor included) buys today is paying all the income and corporate tax, capital gains, gift, estate, alternative minimum, SS and Unemployment tax, and self-employment tax of everyone involved in bringing that item to market, from raw materials, to manufacturing, to transportation, and all the costs of a wholesaler and retailer to bring the item to you, the final consumer. Call that the “embedded” tax. Everyone pays it, it’s in the cost of the item. It just isn’t itemized on your receipt. It’s hidden in that way, but it is there. Under the FairTax, the amount of federal tax you pay will be printed on your receipt. Totally transparent.

Now imagine what the same item would cost if there were no embedded taxes, if that product could be made with none of the above taxes. After over $22 million of research, the percentage amounts to about 22 % less.

The research included, of course, finding out what people buy at all income levels. No small task. That done, for the FairTax to be ‘revenue neutral,’ the FairTax percentage comes in at 23%.

That doesn’t mean an item automatically costs 23% more under the FairTax than it does today. When you remove the 22% embedded tax, and replace it with a 23% sales tax, you see a 1% increase in price on a widget. This is an average, not an absolute. One method is swapped with the other, having a negligible effect on cost to consumer.

2.) Here’s what the critics don’t tell you, or don’t know about. There is NO TAX on used items, including a car, motorcycle, boat, or house sold that was not bought by the ORIGINAL owner. The sales tax is ONLY for NEW items purchased for the FIRST TIME. Fair thing is, this applies the same to everyone, at all income levels. Including tourists, diplomats and other non-citizens.

3.) Because it is a consumption tax, assessed to new items sold, everyone pays it. The tax base instantly expands to 320,000,000 people instead of only legal citizens who have a job. What we have now is an income tax. No income = no tax revenue. And a tax base less than half of that. And because of that dynamic, the FairTax is a more stable revenue source. Fair thing is, this applies the same to everyone, at all income levels. Including foreign tourists, diplomats and other non-citizens, legal or illegal. And that tax never exceeds 23%.

4.) This is the part that makes this consumption tax progressive, instead of regressive. The Prebate. Designed to be the same, aka fair. Everyone gets this prebate based on the number of people in the household. And the prebate is for legal U.S. citizens only.

Now a new term to learn, effective tax rate. Based on the consumer spending research mentioned above, the amount of the prebate is figured to offset the sales taxes that would be paid for the basic necessities that everyone buys up to the poverty level as determined by HHS. It is paid to the household every month. Taking the prebate into account, lower income people pay less than 23%. In fact, the prebate at the lowest income levels make the effective tax rate a negative number. An income stream.

5.) Absent all the embedded taxes, at the federal level, the term ‘take home pay’ becomes obsolete. Your gross pay is also your net pay. THAT makes a big difference for all people, especially the poor. Currently, for every job, and many people do have 2 or more jobs, they pay those embedded taxes. Can’t get more regressive than that. Imagine the effect when they are not taxed every time they get another job. Purchasing power goes up for everyone, only greater for the poor. The rich pay the maximum 23%. But since “the rich” also buy more, they pay more taxes in dollars, obviously, than the poor, when they buy their yachts, cars, planes and other high-end toys. That’s how it affects families of all income levels, on the personal level.

6.) No more income taxes to file. And because of that, there is no compliance cost incurred to pay them. No tax preparers, accountants, or tax lawyers to pay. In total, a saving of over $400 billion. And, the IRS is effectively gone.

7.) On the national, macro level, absent the income tax, the $10-15 trillion that U.S. companies have sheltered overseas will come back to be invested here, since there will not be a tax obligation to shelter it from. Then, with the absence of an income tax, foreign business will come here and open up shop. The U.S. will become a global magnet for businesses. The U.S. will become the “offshore tax haven.” There will be a job for anyone who wants to work. Maybe more jobs than people. And competition between employers to get employees will do what? Increase wages. We will experience real economic growth on a personal and national level. And none of it  government subsidized, adding to the national debt.

fair-tax-before-after1

How the politicians spend that is another matter. The FairTax is only to be the replacement source for funding the government. It has nothing to do with how that money is spent or where it is allocated.

You can read the text of the bill HERE. It’s not 75,000 pages like the current IRS code. H.R. 25 is a whopping 132 pages long. And more information is available at the link at the upper right-hand corner of your screen.

Link: H.R. 25: FairTax Act of 2017

Net Job Losses Continue

The Bureau of Labor Statistics of the Department of Labor, Sec Reich’s old job, has released their data for the month of November 2016, along with some other data.

The big “news” out of it is the fake news about the record low unemployment rate.  Down to what it was when Bush left office at 4.6%. That, and 178,000 (non-farm) jobs were created in November.

The reason the unemployment rate dropped is not because more people found jobs. It is because 591,000 people, unemployed for so long, were not counted. They are considered (by the Labor Department) not part of the labor force. As if they died or something, so they are not factored in determining the unemployment rate. They’re still alive though, and when  you count them, the unemployment rate (the U-6) is 9.3%, not the 4.6% that the president and his media tout.

“The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.9 million and accounted for 24.8 percent of the unemployed.” Let that sink in. Does this look like economic recovery to you?

The deception gets even more robust when the administration discusses job creation. When the narcissist-in-chief brags on his record sounding something like this; under my administration, we’ve had 78 months of consecutive job growth, or some such, he is not telling you the whole story.

It is hard to reconcile record job growth when there are 94 million Americans not working. And have been for years.

Here’s how it works for him. Imagine jobs in an economy being an interstate highway and Obama is at the on-ramp counting jobs being created. No one is counting the jobs being lost in the very same economy. That would be the off-ramp. He is also not telling you that people who have a job, and get a second or third job to support their family, that those extra jobs that one person has are counted as a new job created. On that subject, there are 511,000 more multiple job holders for Nov 2016 than there was in Nov 2015.

Not mentioned either is the fact that when you factor deaths, retirements, and population growth, a break-even for jobs being “created” per month is 250,000. Anything less than that is a net job loss. Here’s what this looks like for the last two  years. Out of 24 months, only 9 represented job growth.

screen-shot-2016-12-05-at-4-04-05-pm

So when you see the administration, or the nightly news people reporting that 178,000 jobs were created last month (in their cheery and upbeat tone), what they’re not saying is that the economy lost 72,000 more jobs last month. Obama’s legacy.

Employment Situation Nov 2016 by Ross Calloway on Scribd

Dep. of Interior Goes Rouge On Dakota Pipeline

This is a prime example how the unelected bureaucracy, with its regulatory agencies, drive up cost of everything, including the Dakota Access oil pipeline in southern North Dakota.

After a decade of planning, research, and obtaining approvals for same, Obama’s Dept. of Interior throws a wrench into the project by using the U.S. Army Corps of Engineers to deny an easement for the completion of the project.

The pipeline is largely complete except for the now-blocked segment underneath Lake Oahe, a Missouri River reservoir.

But that’s not all it did. The Department also inserted a pack of Indians, protesters, with zero interest in the project into the negotiating and planning process.

According to a news release, Assistant Secretary for Civil Works Jo-Ellen Darcy said her decision was based on the need to “explore alternate routes” for the pipeline’s crossing. What? Now that it is already built is no time to explore alternate routes.

And anyone should even wonder why the Obama administration is the most unfriendly to business and industry?  Especially the energy industry. And why they move overseas wherever possible to avoid this kind of interference?

Links: The Dakota Access Pipeline Project  |  Army Corps blocks route of Dakota Access oil pipeline

Jobs Situation, October 2016

The last jobs report before the presidential election  from the Department of Labor Bureau of Labor Statistics is out today. Here is the “progress” President Obama is talking about today in Fayetteville, NC while he campaigns for Hillary Clinton.

Two things you should know about what you will hear from the mainstream media. One is that they will report an unemployment rate below 5%, 4.9%  (Table A-1) The number is only that low because they don’t count millions of people who’s unemployment benefits have run out. It’s like they don’t exist any more. The real unemployment, the U-6, is 9.5%, not 4.9%. (Table A-15)

There were 161,000 jobs created in October 2016. (Table B-1) And this number includes people who have lost their FT job and taken on a PT job. It also includes those who have a job and got a 2nd or 3rd job. Taking into account births, deaths, immigration, and retirements, a minimum of 250,000 jobs is considered break-even. So 161,000 jobs created represents an 89,000 net job loss.

At the start of the Obama administration in 2009, there were 80,380,000 people not in labor force. As of Oct ’16, this has increased to 94,609,000. Obama’s economy since taking office represents a net negative job growth. And minorities are hit worst.

Black labor participation rate (Table A-2), the number of people who can work that are working, is Oct 2015, 62%. Oct 2016, 61.8%. Fewer Blacks working this year than last year.

Black unemployment Oct 2015, 8.3%. Oct 2016 8.6%. (Table A-2) Unemployment rate for Blacks is double that for Whites at 4.3%.

The jobs being created are not the better paying jobs. Comparing Oct ’16 to LY, employed persons by occupation, the largest sector growth is in the low-paying services sector at 1.12 million. (Table A-13)

Oct ’16 compared to Oct ’15, there is a 430,000 increase in people having multiple jobs. Because they have to just to get by. (Table A-9)

October ’16 compared to LY, there were 163,000 more people NOT in the labor force. Compared to the previous month, Sept 2016, the increase  is 425,000. (Table A-1)

Employment Situation October 2016 by Ross Calloway on Scribd

This dismal economic situation should open your eyes to what you can expect if Hillary Clinton should become the next president, because she is campaigning on continuing, if not exacerbating, Obama’s path.

Link: Employment Situation October 2016  |  94,609,000 Not in Labor Force; Participation Rate Drops to 62.8%

 

September Jobs Picture, Sad

According to the Bureau of Labor Statistics, the September Employment Situation looks like this.

All you will hear about it from Secretary Clinton and President Obama, and their spokespeople in the media, is three blurbs . . .

  • Unemployment rate 5.0,
  • 156,000 jobs created,
  • and nn of consecutive months of job growth.

Not sure how many number of consecutive months it has been, but it doesn’t matter, because it amounts to a net job loss.

To put the numbers you hear and see from the administration into perspective, realize that a monthly job creation of 250,000 is considered to be a break-even number when retirements, deaths, and population growth (births, immigration) are factored.

For September 2016, 156,000 jobs were created. Far short of break-even. Aside from that, and even worse, 284,000 jobs were lost in September. Of the 156,000 jobs created, 30,000 of them were in the foodservice industry.

Compared to last year, 1.8 million people were not counted. Of that group, 553,000 of those were in September 2016. Any thinking person might wonder how the employment rate can be 5% (Table A) when there are more people not working? Fair question. But the media never worries about that. The way the BLS arrives at that low percent is because they don’t count the millions of people who haven’t been working so long that their unemployment benefits have run out. They didn’t die. They’re still unemployed. If they were included, the REAL unemployment rate is 9.7 %. It’s called the U-6, (Table A-15).

When you dig deeper into the statistics, you come across a “MULTIPLE JOBHOLDERS” category, (Table A-16). These are people who have a second (or more) jobs because they have to and are able to, just to support themselves and their family. That number increased by 549,000 for Sept 2016 over LY. The dirty little secret about the multiple jobholders stat is, the second or third job that they get is counted as a “job created.” It’s still one person. Keep that in mind when you hear Barack or Hillary tout the number of jobs created. Makes me wince at their dishonesty when I hear them.

The Labor Participation Rate remains at 62.9%. That is the level it was under the Great Malaise administration of Jimmy Carter.

This is Obamanomics. We are living the consequences of Obamanomics. It’s more like, Trickle Up Poverty.

If you think it’s time for a different approach to job creation, one that will actually create more high-paying jobs, your choice in November can only be Donald Trump.

Link: Employment Situation Summary

 

The Campaign Tax Discussion

What an opportune time to talk about tax reform, thanks to the ft-how-federal-income-taxes-were-distributed-in-2014_04282015-lgClinton campaign and their publicist, the New York Times. Accusing Trump for not paying “his fair share.” To chastise Trump for having to hire a team of accountants and lawyers just to file his taxes, shows what an abortion of tax code Americans are saddled with. For example . .

  • The top 1 percent of earners (incomes in excess of $615,000) are paying nearly half — 45.7 percent — of individual income taxes for tax year 2014.
  • The top 20 percent, with incomes above $134,300, pay nearly 84 percent of all federal income taxes for tax year 2014.
  • The growing complexity of the U.S. tax code has led to large compliance costs for households and businesses.
  • Americans will spend more than 8.9 billion hours complying with IRS tax filing requirements in 2016.
  • Put in dollar terms, the 8.9 billion hours needed to comply with the tax code computes to $409 billion each year in lost productivity, or greater than the gross product of 36 states.

That’s not how much taxes were paid. That’s how much it cost us, as a country, just to comply with the tax laws to file our taxes.

Under the FairTax plan, that’s $409 Billion per year that stays in our pocket, FOR FREE. Under the FairTax, you don’t “file” your taxes any more. There’s nothing to file under a consumption-based tax system. And April 15th is just another day.

So Hillary and her lemmings want to paint Trump as a tax cheat when he follows the tax law. Legally spreading a single loss in 1995 of $916 million dollars over 18 years. (Must be nice to have a loss like that to be just a bump in the road.) Unlike Al Sharpton, Trump did not break the tax law. They are great at name-calling on phony accusations.

Well guess what? Come to find out, the New York Times didn’t pay any taxes either, for 2014! And on top of that, got a “tax refund” of $3.5 million (of taxpayer money), even though they had a pre-tax profit of $29.9 million. How do you like the tax code now?

But when it comes to one of their own, like Rev. Al Sharpton, who in fact did not pay his income and payroll taxes, who has tax liens on him for over $3 million, well, he’s a frequent VIP in The White House.  Go figure!

Nowadays, Bill Clinton and Al Sharpton will tell you the hot money seems to be made in Charities and Foundations. They don’t pay taxes, especially when you can donate to yourself. Two different worlds, two different standards.

Hillary’s Campus Rally

Hillary shared the stage with the Bern yesterday “to appeal for youth votes.” Worried about shrinking support from millennials (now the same as ‘college-age’), she echoed the “free stuff” theme of making public colleges tuition-free, for families earning less than $125,000.

Odd that the campus rally wasn’t open to the students without an invitation. Attendees described many of them as middle-aged, members of local Democratic organizations, or invited by the campaign. Phony much?

Although Sanders lost to Clinton, he consistently drew younger voters to his side with promises to take on Wall Street and make college less expensive.

Hillary’s version is not as bold when it comes to taking on her major donors, Wall Street. Speaking to student debt, she’s not talking about forgiveness, she’s talking about “those who already have student debt to refinance.”

Having lived through the real estate crash caused by Fannie / Freddie and bailing out Wall Street (which they continue to do), and what Obamacare has done to health care costs and the health insurance industry, managed by politics and not economics, what Hillary has in mind is just more of the same.

You can’t expect for the people who created the problem to now know how to fix it.  Like Trump says, “follow the money.”

Link: Clinton enlists former foe Sanders in appeal for youth votes

“Immigration Law” Is “The Deportation Force”

Last year, when CEO Trump mentioned the use of a “deportation force” to ostensibly deport the 11-30+ million illegal aliens already in the country, the opposition party (which included his republican primary challengers) ran with the demagoguery a la Adolph Hitler.

Now that the rubber is getting closer to hitting the road, what once looked like a police state actually has boiled down to something as simple as just enforcing current immigration laws.

As a secure border that will halt the illegal flow of humans and drugs is being established, law enforcement and the border patrol will be allowed, and empowered, to do their job. A 180 degree turnaround from the shackles put on them by the Obama administration and the Dept of Injustice.

As illegals (Visa overstays or otherwise) come into contact with them, they will be dealt with as the law requires. It is a kinder, gentler, way to deal with the illegal alien problem created by decades of neglect, and an administration breaking the law to break the law. It may take longer than a “deportation force” would, but the result will be the same. And, the American people will accept that as a more humane way to re-establish law and order and protect our economy, jobs, and culture. As illegals will not have sanctuary cities to run to, and won’t have employers that will hire them or landlords to house them, they’ll hit the road in one of two ways. Voluntarily return home, or as they come into the justice system, will be handled accordingly.

Those who may remain will be those who are somehow productive and, will be dealt with in a way yet to be determined. It should start by getting in line behind the immigration requests filed in accordance with our laws. To do that, they must come out of the closet and register themselves as an illegal, seeking to stay here under some earned legal status.

Assimilation is required. If they just want to use America instead of become American, then they will not meet the minimum requirement for the path to ‘citizenship.’

It will take as long as it takes for them to get their chance to become an amnestied American citizen. However many years that may take is what it will take. No jumping to the head of the line. And to remove the political motivation from the equation, amnestied American citizens will not have the right to vote in federal elections. After all, this is supposed to be a humanitarian issue, not a political one. A  small price to pay to stay and live in the United States of America.

We will learn more of what Trump’s immigration policy is about tomorrow. Will be interesting to see how it compares to mine.