Analytics

Wednesday, May 31, 2017

Post #3237 M

Quote of the Day

If we must all agree, all work together, we're no better than a machine. 
If an individual can't work in solidarity with his fellows, it's his duty to work alone. 
His duty and his right. 
We have been denying people that right. 
We've been saying, more and more often, you must work with the others, 
you must accept the rule of the majority. 
But any rule is tyranny. 
The duty of the individual is to accept no rule, to be the initiator of his own acts, to be responsible. 
Only if he does so will the society live, and change, and adapt, and survive. 
We are not subjects of a State founded upon law, but members of a society founded upon revolution. 
Revolution is our obligation: our hope of evolution.
Ursula K. Le Guin  


Tweet of the Day










Image of the Day

via LFC


A Good Start To Long Overdue Pension Reform




The Free Market and the Final Frontier




Rothbard On the Trade Deficit: Spot On!




Free the People




Family Addition




Political Cartoon

Courtesy of Dana Summers via Townhall

Musical Interlude: My Favorite Vocalists


Neil Diamond, "Brother Love's Traveling Salvation Show". One of my all-time favorites.

Tuesday, May 30, 2017

Post #3236 M

Quote of the Day

Hard things are put in our way, not to stop us, 
but to call out our courage and strength.
Anonymous  

Tweet of the Day











Image of the Day



Milton Friedman Schools a Younger Bernie Sanders


Bernie never learned a thing from getting his ass kicked.



Share Wars: A Star Wars Parody














Choose Life: Happiness Is Meeting Your Twin Baby Brothers




Bless the Beasts and the Children



Political Cartoon

Courtesy of Steve Kelley via Townhall


Musical Interlude: My Favorite Vocalists


Neil Diamond, "Shilo". Neil returns to Top 40 for the first time since "Kentucky Woman".



Post #3235 J

My Faith in the Next Generation Took a Hit

To a certain extent, I understand the confusion of the next generation of my nephews and nieces; I earned 4 college degrees in politically "progressive" institutions. If I ever had a politically conservative or libertarian professor, I didn't know it. I wouldn't say that my "progressive" professors necessarily taught their ideology in classes; it was more subtle, e.g., critical comments on an assignment, course requirements (e.g., reading a multicultural author or attending an Alex Haley lecture on campus), curricula changes, so-called "student rights", faculty recruitment (e.g., recruitment of women and minorities), etc. I know certainly by the time I was a junior (nontenured) professor, it was fairly clear that expressing my emerging conservative view was politically suicidal, at least until I got tenure (which never happened, but I never went up. Typically, at least while I was in academia, you go up in your sixth year. There are exceptions of faculty going up early, not relevant  in my case.)

How did I transform my political views?  I think it started with a nagging doubt, and sometimes that's as a true believer. During my salad days, I convinced myself there was a problem which government needed to fix. I never really analyzed the details or assumptions of proposed fixes; I was more convinced by the name of the bill with my policy preferences. I really didn't analyze government's track record at resolving issues (although I was a deep skeptic, even as a military brat, of the Vietnam War; I was too young to be vulnerable for the draft. But while my Dad was assigned to SE Asia, one of my neighbors at a Kansas post hosting military families lost his Dad. Later in college, my dorm RA, a Vietnam veteran, had lost one of his limbs at Hamburger Hill. Hamburger Hill had little strategic value; it simply chewed up men. My RA wasn't so much bitter over his circumstances as with the fact his limb was sacrificed over a dubious mission.)

So during my student years, it was more like, do I believe in "fair employment" policies? Of course. And if you're not for "fair employment", you surely must be vested in and benefit by "unfair employment". I really didn't question whether the legislation was necessary or might have unintended, even counterproductive effects; I didn't really question whether the purported legislation would achieve its goals or the metrics use to validate them. I didn't consider the compliance costs on employers or if there were other, less heavy-handed ways, e.g., social pressure might lead to market-competitive employers wanting to promote a "progressive" work culture/experience. In current politics, the ideological feminists want to promote equal pay. But let's point out that the empirical data don't show "apple-to-apple" discrimination. When you factor in hours, experience, skills, background, etc., the gap largely disappears. And also, men tend to be more attracted to higher-paying, physically-demanding occupations, like oil rig work or logging. Female engineers are in short supply, etc. On the other hand, women seem to be dominating lower-paying occupations like early education. The fact is, the typical university enrolls and graduates a higher proportion of women students, and higher education correlates with income. In fact, if you look at single women/those without families, they often hold their own (if not do better) than their male counterparts. Almost every study I see closes the gap from 23 cents to the male dollar to pennies when you factor other variables. A lot of issues seem to be with women who take time off or reduce hours to raise their families. That's a personal, not business decision, however worthy the mother's preference. Besides, if and when employers compete for talent, there's an immediate incentive for a competitor to arbitrage any perceived difference from the market salary for said opportunity.

So why object to the legislation? There are a variety of reasons, including compliance costs, having to deal with nuisance suits and lawsuit abuse; employers may shy away from hiring mothers with small children, etc. If companies are paying valued employees below market, they will lose them to the competition, get a bad reputation in the job market and have trouble recruiting or training replacements. I think the contract between a company and employee is voluntary; either party usually has a right to terminate the contract at will. If a female employee feels that she is being exploited, she has a right to quit, but her only real grievance is if the employer is paying below the contracted rate. If I buy a stock one day, and its price drops by 20% the next day, I may be frustrated but I can't replay the transaction arguing it should be 20% cheaper. If I accept a job at a certain salary and it turns out XYZ Corp pays 20% higher for similar work, I have no one to blame for myself for not knowing the higher market salary. It may well be XYZ was not interested in hiring me; I might ask my company for a relevant raise or put myself on the job market. My first IT job was with a well-known insurance company located out of San Antonio. There weren't (at the time) a lot of programming jobs in the market; I found that employers in Houston were willing to pay me 50% more for related work. The point is, the free market is a far better check against employer abuse than any government bureaucrat.

Going back to the "tiny doubts" concept, let me briefly discuss the construct of computer user satisfaction. In my doctoral seminars, I often had to read a number of academic articles in my field every week and write analyses. There were a few users of user satisfaction. A prominent one surfaced before the PC revolution (the Bailey-Pearson measure), which had been published in the prestigious Management Science journal, a variation of which was published a few years later in a similarly prestigious CACM. The measure was based on a few dozen interviews (as I recall in the Arizona area), and the author made a puzzling argument of measure completeness, arguing that it was highly unlikely a salient factor failed to be captured in the process. This argument had gone past peer review, and the derivative CACM measure simply repeated the claim without challenge. I don't recall if I wrote up those concerns in my analyses at the time, but I was also very troubled by whether the assumptions of the statistical test being used were valid. [I simply didn't have the time to review the psychometric literature or thousands of articles in the applied psychology literature to judge the legitimacy of said techniques.] At one point, I ordered the dissertation through inter-library loan, hoping to see if he had published something justifying the argument and statistical test which didn't make the final article. I usually tried to do research in meticulous detail; I might cite half a dozen cases where a similar argument in a reference discipline had been made. But doubts continued to multiply; for example, it's highly unlikely that memory recall was a statistically independent event.

Now why was that important? Because I wanted to develop measures of my own, and it would have been highly convenient for me to make the argument that because Bailey and Pearson or Ives, Olson and Baroudi made the case, I could follow suit. I don't want to go into tedious detail here, but I read literally hundreds of articles on measures in reference literature and never once came across a similar argument. I developed similar concerns about other measures (e.g., Zmud's dimensionality of information article). In essence, I lost my confidence in applied MIS measures and meticulously focused on approaches from reference disciplines.

Long story short, I became more and more alarmed at fellow MIS academics using variations of Ives, Olson & Baroudi. It wasn't so much that I wanted to declare anathema on any future research, but to recognize there were methodological problems and to recognize related limitations.  If there were any published criticisms of the measure, I hadn't seen them. So I wrote a paper criticizing the use of psychological measures in the MIS literature. Now I have a very high hit ratio; almost all the papers I ever wrote were accepted for publication by the targeted journals. This one was stuffed back in my face with personal insults; some were of the nature "instead of picking on someone else's measure, why don't you do something constructive of your own?". Others ridiculed that I hadn't brought anything new on psychometrics since Nunnally, Cronbach's alpha, etc. (A point I made was that reported high Cronbach's alphas were an artifact of  poor questionnaire design.) I strongly suspect the editor fed the article to reviewers who had a vested interest in the measures I was criticizing. I don't have an issue with the arguments expressed above (others were nastier and more personal) but that's wasn't what the article was about; I wanted to start a conversation on applied research, one that I hadn't seen addressed in the literature. Some day I might dig it up, update it, and publish it personally, maybe in a research blog. But it's not like the methodological problems went away simply because they crapped over my paper.

So, the interested reader might want to know: what does any of this have to do with the political blog? I did a number of Facebook Corner segments over the past weekend. One of my nephews critically responded to a fairly factual clip by an Administration spokesman pointing out purported Medicaid "cuts" really amounted to reductions of planned increases (NOT baseline funding).

Now I think all of my 21 nephews and nieces are now of voting age (the youngest just graduating from high school). To be honest, I'm not sure of their politics; they probably know I have a political blog out there. I knew my middle brother's 2 kids were Obama cultists from 2008, mostly because my niece had sent my mother a blistering attack on McCain and cc'ed me (she had an invalid email address for my Mom).  (It was a really odd attack based on McCain's accommodating stand on stem cell research; in fact, Obama and prior nominees had fully bought into stem cell research and promoted it.) I pushed back on the hypocrisy; she cc'ed her brother and mother in the exchange. Her mother was not exactly a "progressive",  probably one of those "I don't brake for Hillary Clinton" types, but she didn't like the way I was pushing back on my niece. Keep in mind this was not a fight I instigated, but quite frankly, if you send out an unsolicited badly toned email like hers which insulted my Mom and me, be prepared for my service volley back, probably twice as hard. My nephew emailed back something to the effect "you can't stop us from voting for Obama, na, na, na, na, na, na!" (They live in Kansas; the chance of Obama winning Kansas was near zero.) My nephew and niece were both into performance arts, and the chance of them being exposed to a conservative or libertarian was near zero, so it didn't surprise me. I can't even say for sure about my younger siblings; I think most of them probably vote Republican for reasons I won't go into here (e.g., my baby brother was upset that I don't support prayer in public schools, and I objected to one of  my nieces' (the oldest of my sisters) public high school graduation (on Air Force Academy grounds), one student using her speaking opportunity to testify to her faith in Jesus Christ (nobody, including my parents, agreed with my objection, although I suspected if the student were Muslim praising Mohammed they would have a different point of view). As for my middle brother, he's a more difficult read and more diplomatic, someone who avoids discussing politics. He started out like me as a liberal and implies that he supported at least one Bush election, but there are things like his sending me a link to a Gray Lady article and almost no conservative ever references the NYT. Even my mother, who definitely supports the GOP more (and whose businessman father was Republican in heavily Democratic Massachusetts) will throw a curve ball, like sending me a Paul Krugman column she finds "interesting". My Dad's best friend Oscar is an unwavering Southern Democrat (one of the few left) who loathed the Bushes with a passion and often rants in San Antonio newspapers.

A couple of nephews (baby brother) suggested they are libertarian (the old fiscal conservative, social liberal motto) and agree with me on some things but not others (unspecified). As for the nephew I started discussing above, we had never discussed politics, but his mother, my sister, has been active in local GOP activities, and his father was also a military brat. His alma mater, Texas A&M, has a well-known ROTC program, so I always assumed he had a more conservative perspective.

So, going back to the nephew discussing Medicaid: I thought after the fact (like I mentioned in a reply comment) that he may have had in mind block-granting Medicaid to the states, like Speaker Ryan has suggested on multiple occasions; I wasn't quite sure what Medicaid does if they are oversubscribed from a funding perspective: maybe elective procedures got deferred; provider reimbursements got deferred; funds were transferred from other government accounts, Congress would vote supplemental funding, etc.  I was fairly confident that the projected funded reflected participant projections, COLA's, etc. My nephew was assuming Trump's reduced increases would result in prorated benefits with beneficiaries having to make up the difference out of pocket. I don't know where he got that idea, and he certainly didn't cite any source to back up his claims. I think it's likely just "progressive" fear-mongering coming straight out of Democratic talking points.

He then starts arguing the taxpayer-transferred subsidies are "good" for the economy because rich people don't spend their money (completely ignoring the importance of investing in the economy, fueling capital spending, municipal and state infrastructure bonds, etc). It's like Pelosi's ideological defense of a grossly overbuilt SNAP program, where she seems to argue having to pay for some or all of one's own food expenses makes or breaks the economy. Yeah, like the 6% we spend on food overall is more equal than the other 94%.  All of this crap collapses under even minor scrutiny.

Along the thread I explicitly mention the elephant in the room: so-called income inequality. I bring out the Gini coefficient (a household-driven inequality measure) and tell him to look it up. I point out all sorts of methodological issues (changing government definitions or data collection, the deteriorating household construct, etc.) I also point out all sorts of issues with income inequality measurements (Piketty, for example, tried to combine data, ignoring nuances, say, in US vs. British data); I pointed out most studies were not longitudinal in nature; many figures used ignore non-wage compensation, including government transfers. I point out that, on an apple-to-apple basis, the Gini coefficient has remained mostly flat since the 1960's--meaning inequality has not been increasing. I later added that on wealth measures the top 1%'s percentage has remained essentially constant at just over 1/3 since the 1960's.

Oh, and when I point out virtues of the free market and the need to reduce and decentralize spending, my nephew decides to take a personal swipe, pointing out why don't I bother telling people I've worked as a government contractor (you hypocrite, you)? (In fact, I've worked for a number of private-sector companies and clients.)

I'm trying to close off the discussion when he suddenly resurrects the Gini coefficient, completely ignoring my earlier citations on the methodological issues and my stressing the need to use a normalized measure like personal income figures. He reproduces the unadjusted plots used by Piketty and others, saying effectively, why should I believe you versus these accomplished trained economists? He then starts discussing some of the issues, like the numbers don't reflect things like lump capital gains. I point out, like in the original article I cited, these things involved nominal vs. real gains that would really needed to distribute across the period of ownership, etc.

The nephew then starting nitpicking over methods of aggregated data, etc., no doubt reproducing leftist talking points, and let me tell you, I have tons of things to do and read beyond whiteboxing the detailed nuances of Gini coefficient methodology to respond to his disingenuous objections. It's like being back in my doctoral seminars, where I had only one week to analyze several articles. I didn't have to time to micro-analyze articles, which were edited accounts and left out a lot of salient details. My nephew was like an annoying Chihuahua nipping at your heels that deserves a quick kick. He doesn't know what the hell he's talking about. He probably hasn't read any of  the criticisms of Piketty's research (I have). These "progressives" have no regard for the truth; they simply want to set the rules of the game, force you to respond to whatever disingenuous objection they can conceptualize.  No, I'm not going to play those games. The guy who wrote the personal Gini coefficient article specifically pointed out, "Look, I have no dog in this fight. I'm a Russian analyzing this pot of accessible US data."

My nephew wrote me an email on the side, calling me an ideologue and complaining that he felt I took some personal shots at him. Talk about the kettle calling the pot black! I'll let the reader decide for themselves whether I was "unfair" in my series of comments. I thought the comments were detailed, constructive and well-written. None of his Medicaid claims were sourced and when he discussed the Gini coefficient he completely ignored my sources because they were not helpful to his left-wing perspective. He was being contrary for its own sake.

So I'm very disappointed. It's not so much the fact my nephew disagrees with me. Almost no one agrees with all my opinions. Even the two nephews via my baby brother admit they disagree with me on some things. Sure, it would be nice if I swayed other people's opinions. I'm more disappointed by his lack of due diligence, a disregard for the truth.

I Finally Dropped National Review As a Facebook Feed


 I finally got fed up with everything from defenses of Trump to neo-con policies, etc. There are 2-3 writers I generally like: Jonah Goldberg, French, and Williamson, but I'm finding myself annoyed with maybe 80% of their posts.

I Reached 10,000 Tweets Today


I started tweeting regularly only about 2-3 years ago. I'm not even sure I would ever reach this milestone.

Monday, May 29, 2017

Post #3234 M Memorial Day

Quote of the Day

Every man's work, whether it be literature or music or pictures or architecture or anything else, 
is always a portrait of himself.
Samuel Butler  

Tweet of the Day













Remy Sings on Memorial Day




Health Care For the Poor




Child Labor and the Free Market





LBJ and Corruption




Political Cartoon



Courtesy of Jerry Holbert via Townhall

Musical Interlude: My Favorite Vocalists


Neil Diamond, "Brooklyn Roads". One of my Top 5 Diamond hits, although it didn't crack Top 40. One of the best autobiographical songs ever written, glorious melody and arrangement, well-crafted lyrics.

Post #3233 J

Watching The Sopranos After All These Years


One of the benefits of streaming services like Hulu or Amazon Prime is being able to binge-watch older series. I think most of the time that The Sopranos originally aired, I didn't even subscribe to cable, never mind premium channels like HBO, which ran the series. I stumbled across the series on a streaming service.

I don't have an active interest in mystery or mobster flicks, but some characters are compelling and complex, like All in the Family's Archie Bunker and Dallas' JR Ewing: without the character, the series doesn't work. You know that Archie isn't going to have a stroke yelling at Meathead and JR isn't going to waste the rest of his life in a Cuban prison. If Archie was just a crude bigot, we wouldn't care about him. Archie and JR are examples of an anti-hero.

Tony Soprano is such a richly-layered character. (Spoiler alert: if you haven't watched the series, the following discusses some elements of the storyline.) He's a mobster street boss who is seeing a female psychiatrist in an effort to deal with his panic attacks. He's a devoted family man with a troubled son and daughter but who compulsively cheats on his wife, even after they've reconciled and he's nearly killed by his paternal uncle, a higher-ranking boss. He makes repeated spurned passes at his therapist; she knows about his shady living and at one point is violently raped in a parking garage. The charges are dropped over chain of custody involving evidence of the rape (a legal technicality), and she struggles over whether to tell Tony, who she realizes could have him killed (if not do it himself). Tony himself is physically dominant and brutal; he not only ruthlessly guns down opponents--he can physically kill a man with his fists. You have the expected plots of rival families/gangs wanting to take Tony and his crime tribe out or battle over territories, of the FBI perpetually targeting him for prosecution.

I recall hearing some discussion of the final scene of the series at the time, with the family seated at a NJ diner and the Journey signature song "Don't Stop Believing" playing, although I don't recall the discussion of the scene abruptly ending in sudden darkness, which may have been a desire not to spoil viewing the series down the road. (I should not write blog posts while watching the series.) I don't even think I was aware I was watching the series finale (I knew I was watching one of the final episodes). The last scene is somewhat anomalous because most times they ate out, it was at an Italian or other restaurants serving wine. The director certainly made it seem the diner was a regular thing, e.g., discussing ordering onion rings as an appetizer. In fact, in the closing episodes, there was a clash between crime families, serious enough for Soprano to put his family in hiding. We saw a meeting of Soprano negotiating a settlement with the other mobsters and the family coming out of hiding. I do recall in the final scene that there were numerous shots of one other diner patron and Tony seems somewhat apprehensive, constantly looking around the diner and who's entering the diner. Most of that final scene seems to reflect what Tony is seeing, while other shots seem to focus on Tony himself (inferred, from someone else's perspective). Usually there is no wasted motion in a final scene: why focus on one other diner patron? We see fleeting glances of others in the diner, but the camera seems to linger over Members Only Guy (MOG). So I immediately focused on the scene when I heard Tony select "Don't Stop Believing". I'm not sure of the symbolism of the song, other than the word "stop" in the title. We see in the closing moments the diner another scene from Tony's perspective when everything goes black and silent in the middle of the song chorus for several seconds. It's fairly clear this isn't your typical fade out, life-goes-on final scene.

The only logical conclusion is that Tony is murdered by MOG, with black screen silence reflecting his death. As the cited source points out, MOG had an unobstructed view of Tony's head from the bathroom entrance. I don't recall hearing something obvious like a gunshot (in fact, there seems to be a debate over that final scene and its meaning, although the darkness is unambiguous, and Tony's murder is a logical climax to the series). Plus,Chase had been foreshadowing Tony's demise: one by one his closest relatives/subordinates have been eliminated (in particular, his nephew Chris and his brother-in-law); the other mob boss vows to chop off the head of Soprano's crime family; Tony's psychiatrist has dropped him as a client (feeling professionally responsible for Tony's ongoing violent crimes).

As someone whose hobbies include creative writing, I now appreciate why the show had such a wide following. It might have been interesting to see Tony go up on racketeering and/or other charges or Tony grooming his son to be his successor (which could have been a jump point for a sequel series). Of course, Gandolfini's 2013 passing pretty well killed off any possibility of a series resurrection. (It's not easy to see how that could happen without something like an unlikely Bobby Ewing dream storyline.) I don't think some of the violence or gratuitous topless/sex scenes were necessary, and there were weird storylines like wife Carmella's flirtations with her priest. But overall, Chase did do an excellent job making us care about his characters and their story.

More Reflections on the "Civil War"

Poor Robert E. Lee is becoming a victim of political correctness in Virginia. Truth be told, he's getting it on all sides, including libertarians, not happy with his activities in the war in Mexico. And as others point out, Lee was not nostalgic after the war and was not someone who wanted things like statues erected in his honor.  Others will point that many statues and monuments were constructed decades after the war.

Me, I dislike a fetish for memorializing military or political leaders; if the private sector wants to do it, fine. That being said, I don't like cultural Marxists trying to impose their intolerant presentist bias onto local jurisdictions.

During this anti-Confederate attack, I have been repulsed in reviewing hashtags by progressives using terms like "treason"; even the term "Civil War" is polemical. Let's be clear: the North invaded the South, and it was a war of aggression (don't even try to use Ft. Sumter to justify an invasion).

The Confederacy viewed secession as a natural extension to the War of Independence. They were not insurgents looking to overthrow the Union government. So the "Civil War" seems to suggest a dispute over the US government with the South looking to impose its will over the US. That is the context for treason or insurrection, not a bloodless secession of the Confederacy. The Confederacy simply wanted to be left alone; it had no territorial ambitions to conquer and annex the North. Let's point out secession was not just a Southern construct; in fact, some Abolitionists wanted the North to secede from the South.

So like others, I'll probably start using another, more fitting name like the War Between the States.

Finally, libertarians are split on the war. I don't accept that author's distinctions.

First, let's be clear: we libertarians who support secession of the South do not deny the evil of slavery or the fact that preservation of the institution was a motive for secession.  But let's point out slavery was constitutional at the time of secession, that some slave-owning states remained in the Union, that slavery was abolished months AFTER the end of the war. The right to secede is based on the same right to join the Union.  For those of us who defend secession. this is a consequence of the principle of voluntary association, and the Confederacy had a natural right to defend itself from Northern aggressors.

Nobody is denying the abomination of slavery. There are reasons to believe that the South would have eliminated it eventually for a number of reasons, including the dampening effect of slavery on local wages and the high costs of dealing with fugitive slaves, not to mention the uncooperative North, not to mention eventual industrialization of the South and economic diversity.

Sunday, May 28, 2017

Post #3232 M

Quote of the Day

Every truth has four corners: 
as a teacher I give you one corner, 
and it is for you to find the other three.
Confucius  


Tweet of the Day

Once again, one of my tweets went viral ("Thanks to Trump").






















Image of the Day


via Cato Institute
via LFC on FB

Thomas DiLorenzo on Myths of the Great Depression




Towards Intellectual Free Expression




Facebook Corner


A continuation of an exchange with a young married relative with a college degree. It really doesn't surprise me that he, like some of his cousins, is a political "liberal" (I happen to be one of those libertarians who want to reclaim the term, which is commonly used to describe Statist progressives; there is nothing liberal about government at the point of a gun.) I often reprint the opposing comments, but I usually redact identifiable information about relatives in the blog. I'm somewhat surprised because I know his mother had been active in a Republican wives' club, and he went to one of the more conservative Texas universities. I knew he didn't like Trump but in years we've been "friended", I've never seen him otherwise express political comments personally or through Facebook and I've posted probably hundreds of comments.

You should be able to infer the themes from my responses. Basically, he is arguing income inequality, that redistributed income for lower-income is spent more efficiently in the economy than low-propensity-to-spend well-to-do. He is not happy with outsourcing and offshoring. He wants all sorts of government interventions, including more active involving in education. He uses the leftist pejorative of "trickle-down economics" to describe my point of view, and when I talk about the need to radically downsize government and the grossly overcompensated public sector, he shoots back a not-so-subtle reference to the fact I've worked as a government contractor. He later sent me a private email after I indicated that I was done with the conversation, arguing that I was an ideologue and he didn't like the verbal shots I made along the way. I recently read a libertarian make a similar point about us needing to play nice with others, to make friends and influence other people. Let me be frank; I don't suffer fools easily. And I particularly don't like people copy and pasting partisan talking points. I don't mind people disagreeing with me (well, of course, we would like to believe we can convert a Statist to a free market perspective, but few people have the ability to overcome their intellectual biases) [Since I started this write-up and specifically noting the conversation was over, he decides to add a thinly-disguised shot on my earlier reference to the Gini coefficient, specifically referencing Piketty in the process. Commence ass-kicking.]

Clip 1:

I don't care about income distribution; it's a non-issue from an economic standpoint: the fact is that arguing over a more "equitable" slice of the pie is irrelevant when the pie is growing. A smaller slice becomes bigger with the economy. The fact is the matter is that investment is the crown jewel of a growing economy, and we have an economy that is biased in the direction of spending, against working and investing. We tax interest income which is de facto capital under the current Federal Reserve scheme. The mortgage interest rate deduction also inflates the value of property and is relevant only to high middle-income and above.

You apparently believe in the economic nonsense perpetrated by the likes of Piketty, whose research has been widely discredited and I'm not going to waste my time here refuting it. I'm a free market guy, and it's no secret that top-heavy government is responsible for mediocre economic growth we've seen this generation. THE FACT IS THAT OVER TWO-THIRDS of government outlays ARE FOR INDIVIDUAL BENEFITS, which is NOT the purpose of government. Government is highly inefficient and is self-serving.

I will simply point in passing that the Gini coefficient (look it up) has been essentially flat (on an apple to apple basis) since the mid-60's. This basically disproves your "the rich are getting richer at the expense of the poor" nonsense, socialist claptrap. I will also point out that the purported shrinking middle-class has been more of merging into the higher class, that many of the studies you revere are NOT longitudinal studies (looking at compensation of the same person over time): we have had significant migration among quintiles. Not to mention these studies you implicitly reference look more at wages, not total compensation (not to mention the stolen income transfers you are defending). You also ignore the higher standard of living resulting from economic-liberal (as in free markets, not socialist schemes) policies like free trade and market innovation/competition; many of America's "poor" enjoy cars, air conditioning, cellphones, TV, appliances, etc. There's actually a serious obesity problem with maybe 6% of income involving food purchases. I could go on and on; I have gone on in significant detail in over 3200 posts in my political blog.

Oh, and for that little shot referencing current or past government gigs: first, I'm not a civil servant who makes far more, especially when you factor in benefits. For all practical purposes, I haven't accumulated any employer matches to retirement over my work career or qualified for any kind of pension system. Second, I've worked for clients across industries and different levels of government. For example, all the years I worked in Texas, except when I was teaching at UTEP, were for private-sector clients. Government especially on the federal level has high barriers to entry, e.g., background or clearance which have to be sponsored. Over 10 years in Maryland, I never got a gig which included a clearance opportunity. Did you ever wonder why the DC metro area includes some of the wealthiest counties in the US and is so politically "progressive"?

Clip 2:

Nope, you've got the cart before the horse. Investment is the fuel behind production of goods and services. When the well-to-do invest, it not only provides employment opportunities, but makes possible more price-efficient and/or new goods and services available to the masses. Investment makes possible roads and other infrastructure which goes far beyond the 1%. While billionaires like Gates, Buffett, and Ellison are billionaires multiple times over, they have also created millionaire employees and investors by doing what they do best.

You are so boxed in by "progressive" propaganda, you have no clue about real economics whatsoever. The percentage of manufacturing jobs has been going down since Obama was in diapers (not adult ones). Counterproductive, economic clueless policies like minimum wages hurt job seekers and spur on substitute labor, including self-serve kiosks making their way into fast food joints. Each and every "progressive" policy you favor results in counterproductive unintended consequences. As for offshoring, etc., that's part of the law of comparative advantage--didn't you take any econ courses at A&M, because you're flunking Econ 101 in this thread? The point is freeing up American labor and wringing inefficiency out of our economy is to the BENEFIT of all American residents.

No, we don't need the current left-fascist government to micromanage education resources. At best, under the public education system basically ruled by corrupt crony unions, we've had stagnant achievement, despite spending multiples per student 4 decades back.

The ONLY way to restore this government and country is to RADICALLY DOWNSIZE AND DECENTRALIZE GOVERNMENT, REASSERT ECONOMIC LIBERTY. A free market, including open immigration. By Friedman's Law, anything that government does, the private sector can do better with half the resources. We will continue to see consumer demand rise from the efficiency made possible by a free, competitive market. The answer is NOT the Statist agenda of my brainwashed nephew. I don't need some left- or right-fascists making decisions better left to 320M consumers.

And with that, I'm closing this conversation; I'm officially bored and disappointed my nephew doesn't have the intellect to look past the propaganda he was taught in public schools.

Clip 3:

Trickle-down theory is a "progressive" pejorative and absolute bullshit. Unless you mean the "trickle down" theory of Statists, where "progressive" bureaucrats get their cut of money stolen from taxpayers.

Clip 4:

 I've now lost my patience with your inability to read plain English. I don't suffer fools gladly. If you had done a simple search in my blog, you would have noticed, e.g., https://rguillem.blogspot.com/2016/04/miscellany-41716.html

The first thing you weren't intelligent enough to realize is that I specifically wrote "APPLES TO APPLES"; now WHAT DOES THAT MEAN? Basically, the Gini coefficient is traditionally based on HOUSEHOLD INCOME. Now a SMART person would know since the 1960's that the traditional household has deteriorated, and so this exacerbates or distorts the Gini coefficient, because the unit of measure has changed. You have to normalize it on an individual basis. Incomes are collected on an individual, not household or family basis. If and when you normalize it on an individual basis, you find it's been nearly 0.52, give or take 0.01 since 1960. (See chart below.) The reason it increased from 1947-1960 is because of a highly regulated economy under left-fascist FDR, one of our worst Presidents who unnecessarily extended the Depression with his economic illiterate interventions, like wage-price controls. If you're more interested in reading about this, consider https://finance.townhall.com/columnists/politicalcalculations/2013/12/05/the-major-trends-in-us-income-inequality-since-1947-n1757626

Now stop copying and pasting leftist propaganda and start reading from a critical perspective. For you not to wonder how a changing unit of measure changes the analysis is lazy-ass thinking.

I've finished my commentary on this thread. I've spent too much time having to teach you stuff I picked up on my own. 


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Adorable sweetie!




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Musical Interlude: My Favorite Vocalists


Neil Diamond, "Red, Red Wine"

Saturday, May 27, 2017

Post #3231 M

Quote of the Day

Never cut what you can untie.
Joseph Joubert 

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Continuing on a young relative's comments/replies. He basically argues a Keynesian argument over a purported family's having to pay more out of their limited pockets for heathcare (vs. Medicaid) is bad for the economy. He seems to argue that oversubscribed Medicaid results in reduced benefits per person (I haven't heard of evidence of per capita reductions of benefits particularly at the end of a fiscal year.) The final exchange is with the OP.

Let me warn the reader to be wary of Internet content. One link I found in Google talked about a Medicaid trust fund. There is no such thing; I think the writer was confusing Medicaid with Medicare, one of 2 trust funds associated with FICA deductions.

 First comment:

Nope. The money taxed to redistribute to Medicaid at all IS in fact stolen from the private sector and hurts the economy from the get-go--only worse managed and less effective under the government.   The idea that somehow because people have to pay for some of their health expenses is "bad" for the economy is hogwash Keynesian garbage. Before Big Government "solutions", there were private sector accommodations; people weren't "dying in the streets".

Again, I don't know of any cases where the government rations benefits to accommodate outlays. [I'll make the obvious exception of veterans dying on waiting lists of VA hospitals. It could be the case that Medicaid might push elective surgeries to the next funding period, although I'm unaware of that happening.] In the case of Medicare and social security, you have the trust reserves. I don't know how it handled out in the case of Medicaid; there may be fund shifts, deferral of payments, supplemental funding requests, etc. But I'm pretty sure if you qualify you get the benefits. (Of course, doctors may not want to accept you, which probably means going to a hospital)  We would know if funding dried up and people were rationed near the end of the fiscal year.

If it were up to me, I would abolish ALL mandatory funding, period. But lacking that, there has been one idea that Paul Ryan has floated for years and which Trump may support, although I don't think it's going to pass over the weeks ahead--and that is block-granting Medicaid money to the states, which currently directly fund 42-50% of the cost. It's highly possible we will see  the states introduce cost controls including user premiums, tightened eligibility, etc.

Second comment:

No, your point of view results from a poor understanding of economics. Your income is comprised of current spending and future spending or savings. There are some very bad effects: this is like robbing Peter to pay Paul. You "solve" today's problem by transferring expenditures to the current period, but where do you get tomorrow's spending? This is exactly the type of thinking that led to the Great Recession.

A case in point: the Nasdaq collapsed to almost a third of its value after 2000. During the Internet boom you had companies issuing multiple purchase orders trying to secure high tech gear. Once an order was fulfilled, they cancelled the others. But the tech companies overestimated the growth represented by purchase orders. It probably took 2-3 years to work through inventories (not to mention almost new gear from companies gone bust). The high demand, of course, had resulted in unsustainable price surges--just like people able to buy more house that they could afford. This pretty well killed any short-term recovery in the tech sector.

The exchange with the OP:

 It sounds like the scariest game of kick the can ever played... we just do t know what generation it will effect.
 It is. Historically government programs have not done well once debt exceeds the size of the economy. We're already seeing that in Greece and Japan. The GOP ran into similar issues about 12 years back under Bush. It's politically unpopular to do reforms of programs like social security, Medicare, and Medicaid. (preferably their elimination). Unfortunately, change will only happen when there's no other choice. Watch the drama going on in Illinois. Both Chicago and Illinois are sinking under the weight of an unsustainable pension system which is siphoning funds from other spending. They tried to do modest pension reform a few years back, but the Illinois Supreme Court ruled it unconstitutional. We may need to see Congress extend bankruptcy to a state level so they can be rid of their unsustainable union contracts.. Property taxes are already sky-high. Their debt is rated near junk level (high rate interest). And yet the Democrats who caused the problem are voted back into power year after year. Chicago Mayor Dead Fish is already resorting to a variation of payday loans. This will not end well.

God Bless Maddi

The school needs to reflect on Christ's mercy.



Jefferson, Lincoln and Secession




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Neil Diamond, "Kentucky Woman"

Friday, May 26, 2017

Post #3230 M

Quote of the Day

I got a fortune cookie that said, "To remember is to understand." 
I have never forgotten it. 
A good judge remembers what it was like to be a lawyer. 
A good editor remembers being a writer. 
A good parent remembers what it was like to be a child.
Anna Quindlen  

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(RNC Clip). (I could not embed the video, but basically Mulhavey is talking about the political talk about budget cuts and mandatory spending. where budget cuts amount to reductions in planned increases. A young relative pooh-poohs the comparison of federal and household budgets, e.g., unlike the government, a household can't monetize the debt. This is my response.)

Some of the things you're saying are true (but irrelevant), but what is being said in the video is also true. By the way, the guy in the clip is discussing Medicaid, not Medicare. Medicaid does not involve the pretense of a lock box (like Medicare and social security) but is more of an ongoing expenditure with costs split with the state (typically the highest line cost in a state budget). The spending for senior entitlements (plus disability payments) is from ongoing FICA revenues plus trust withdrawals (if applicable). (Surplus FICA goes into the trust.). Medicaid is funded through general revenue.

What Mulvaney is talking about is MANDATORY SPENDING, the 70+% of the government's $4+T budget, and it operates as discussed. The funding is pre-established with planned increases for projected beneficiaries and for relevant COLAs; that is part of what the SSA actuaries look at.

The government typically plans in 10 year budgets. The government can, of course, modify mandatory spending, but it's a difficult political process. As I mentioned, there are PLANNED INCREASES that aren't subject to the annual budget battle, accounting for the remaining 30-% in spending, including defense and social welfare programs.

When the political whores (especially Democrats) talk cuts in spending, they are not speaking of budgets, like in a household. Your household budget does NOT automatically increase for inflation, etc: it's basically some fixed amount for your expenditures. If you lose your job, you will cut your budget to accommodate your spending; you can't arbitrarily decide your budget line items will grow 4% every year. you don't know your income will grow enough to accommodate those planned increases. If those budget items do increase, you have to find the money from other items in your budget or fund them from your savings. THAT is what Mulhavey is talking about.

So, in the Alice in Wonderland world of Washington, when they talk about "cuts", they aren't talking about retiree quotas or reducing retiree benefits. What they are talking about is reducing PLANNED INCREASES. Is it a "cut"? ONLY IN THE SENSE OF CUTTING AN INCREASE. Using the real world, maybe you were hoping for a 6% raise. You get a 4% raise. But what you would call a pay cut is a reduction in your current salary, not your hoped-for salary with a 6% increase. With a 4% increase, your salary is NOT being cut.

(National Review). For a second time, the courts are in the wrong. [Trump's immigration ban.] http://www.nationalreview.com/article/447999/donald-trump-muslim-ban-struck-down?utm_source=social&utm_medium=facebook&utm_campaign=williamson&utm_content=pre-crime
The Constitution does NOT deny the unalienable right to migrate, you BIg Government whores!

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Neil Diamond, "Thank the Lord For the Nighttime"