A hero is a man who does what he can.
Roman Rollard
Amusing Email Subject of the Day
"Obama-Proof Your Portfolio": wait, I know: hide it in a copy of Adam Smith's The Wealth of Nations; he'll never find it.
Sunday Talk Soup
I think it was Sen. Feinstein incredulously making the point that sequestration and tax hikes taking money out of the economy. The economic illiteracy is staggering. Wasteful government spending (say, paying an unemployed person to dig a hole and then fill it up again) competes for resources with the private sector. But there's the obvious inconsistency of this argument between classes, and Keynesian progressives usually argue government spending is "more equal". Never mind the Fed has been flooding the system with monetary stimulus. No doubt Feinstein would rather use the dollars of foreigners or future generations in paying the government's expenses...
I Resign From the Chris Christie Fan Club
There was a time when I admired Chris Christie's moxie in putting the taxpayer first over special interests like teacher unions. What I hoped was Christie would not ask the federal government to bail out the state. This blog is highly critical of the hugely subsidized federal flood insurance program. But Senate Democrats, confusing the Sandy relief bill with a holiday wish list, threw in all sorts of past event fillers in making their bloated sausage. The House GOP wants a more streamlined approach. Christie wants the bill signed weeks ago and is particularly frustrated with the House leadership.
“We respond to innocent victims of natural disasters not as Republicans or Democrats, but as Americans. Or at least we did until last night. Last night, politics was placed before our oath to serve our citizens,” Christie said.
“New Jerseyans and New Yorkers are tired of being treated like second-class citizens,” Christie Added. “New York deserves better than the selfishness we saw on display last night. New Jersey deserves better than the duplicity we saw on display last night. America deserves better than just another example of a government that has forgotten who they are there to serve and why. Sixty-six days and counting. Shame on you. Shame on Congress.”I'm pleased to note a reader poll showed nearly 2 in 3 disagreeing with Christie. Stop whining,Christie. Obama knew 2 years ago the Bush tax cuts would expire on New Year's. It's how our system of government works. I have no doubt Christie doesn't like getting caught in the middle between a spendthrift Senate and the House trying to control spending. We don't need a presumptuous lecture from Christie on our refusing to serve government pork.
The Payroll Tax Holiday Finally Ends
I am so tired of manufactured crises like the "fiscal cliff" Remember how Paul Krugman waxed enthusiasm over 90% tax rates in the 1950's? I can remember numerous recessions without payroll tax holidays, and the middle class paid these taxes under the Clinton Administration without triggering a recession. 2 pennies on the dollar? I've watched little Fox News over the past few months, but today it was in heavy rotation: I think the context was--after all this Dem talking about extending the Bush middle class tax cuts--it'll simply be your paycheck as usual, except your take home pay will be less, not because of income taxes but restoration of payroll taxes to 6.x%. Also, using 2009 data the middle class paid an effective rate of about 11% vs. 26%. I'm not minimizing the impact of income taxes but the tax burden is reasonably modest.
Payroll taxes are really mandatory individual retirement benefit programs; they don't pay for government expenses. I think it's a mistake for conservatives to borrow progressive talking points: in response to the 53-47% (the latter not vested in government expenses), the Dems always talk about payroll taxes being the 47%'s "fair share').
Does Paul Ryan Have Presidential Ambitions?
With one conservative email noting Ryan voted with Pelosi in passing the odious fiscal cliff deal, I'm sure that this is one of those difficult votes, like TARP, that sometimes you have to do in a party leadership position, but Ryan voted AGAINST Simpson-Bowles and voted for THIS?
Equal Pay For Equal Work?
I don't know what my professors were making at UH hut I used to teach a couple of sections for a few hundred dollars a month--enough to pay basic bills. Professors made a lot more money but maybe only 2-3 classes more. Student completing my classes got the same semester hours, etc. But that did give me an incentive. I think I set a record time in my department going from ABD status to defended dissertation; I went from being ABD #16 to doctorate #4 (missing #3 by one week).
What Friedman is basically saying here is that if a boss is paying someone (say, a white male), more for the same work he is foolishly paying above market. Business isn't personal. We don't need government meddlers; a manager who can't hold on to good workers will have problems competing against his or her peers.
Musical Interlude: My Favorite Groups
The Carpenters, "All You Get From Love Is A Love Song". A deceptively hard song to sing; Karen, as usual, is flawless.
