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Posts Tagged ‘Economics’

Wonder what you would find if you frisked the Democratic Party two years ago?

Answer: They passed the failed $787+ billion Stimulus Package.

Props the National Republican Senatorial Committee (NRSC) for the advertisement.

The Speaker of the House Blog reports:

Two years ago today, President Obama signed the trillion-dollar “stimulus” amid promises it would keep unemployment below eight percent and create jobs “almost immediately.”  Today, the Obama Administration has little to show for its trillion-dollar, taxpayer-funded “investment” except for more red ink and more out of work Americans.  Here’s a by-the-numbers look at the budget-busting, job-destroying failure that is the President’s “stimulus”:

  • U.S. Debt on February 17, 2009: $6.48 trillion
  • U.S. Debt today: $9.5 trillion
  • Number of jobs the “stimulus” was supposed to create: 3.5 million
  • Private sector jobs lost since the “stimulus” was signed: 1.8 million
  • Obama Administration’s projected unemployment rate at the two-year mark of the “stimulus”: 7 percent
  • Actual unemployment rate: 9 percent

Do you remember this chart the Obama administration presented to the American public before the failed Stimulus Package was passed into law?:

I realize the chart above is a little outdated, but the unemployment rate is still above 9 percent. Also, just two years ago, our national debt was $10.79 trillion and now it has topped $14 trillion. That’s equivalent to adding an additional $39,660 per household.

Just like the political advertisement said above, “two years of liberal economics have failed America.”

It’s time ignore the spin and wake up to reality: The Stimulus Package has FAILED.

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Wonder what you would find if you frisked Lee Doren from How the World Works?

Answer: Bar stool economics!

Unfortunately, this little demonstration and common sense thinking is located at the center of the Democrats’ demonization tactic of class warfare. While the Democrats continue to go down that path, the bigger question is: Why do the politicians (mostly the Democrats) in Washington D.C. feel they are entitled to our hard earned money? That money could be invested in new projects and hire more employees.

The Democratic majority knew the expiration of the Bush tax cuts was lingering and now it is the moment of truth… Do they have the courage to man up and tackle this critical issue facing our country’s weakening economy? America is faced with an unemployment rate of 9.8 percent and President Obama is 7.3 million jobs short of where he promised the economy would be by December 2010. It is time for the Democrats to drink a Four Loko, wake up, and come to terms with the fact that they were absolutely shellacked during November’s election and the liberal agenda was rejected.

It is time to finally extend the Bush tax cuts for everyone.

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Stop the spending!

Wonder what you would find if you frisked the size of government?

Answer: Too little means very low economic growth, but too much means… well, the same exact thing.

Ladies and gentlemen… Welcome to Econ 101. Today, we bring you the Rahn Curve to show the declining growth of an economy when government grows too big.

There’s no wonder why President Reagan was able to turn around an awful recession so quickly based on the principle of smaller government:

The contrast with President Reagan’s antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months, the economy grew more than 9% and it continued to expand above trend rates.

In the end, larger government and high uncertainty is the enemy of investment and growth. Unfortunately, this is the type of common sense that today’s liberals and the Democratic Party continuously fail to understand. Quite honestly, it is baffling how such a large group of individuals can be so hellbent on their own ideology – that’s strictly based on theory and not reality – that they fail to look at history and the successful solutions of the past. Perhaps one day they will comeback down to Earth, but then again I might be losing touch with reality to hope for such a thing.

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Wonder what you would find if you frisked a liberal’s knowledge about basic economics?

Answer: They do not have any.

It’s all starting to make sense now!

The Wall Street Journal reports:

Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.

Zogby researcher Zeljka Buturovic and I considered the 4,835 respondents’ (all American adults) answers to eight survey questions about basic economics. We also asked the respondents about their political leanings: progressive/very liberal; liberal; moderate; conservative; very conservative; and libertarian.

Rather than focusing on whether respondents answered a question correctly, we instead looked at whether they answered incorrectly. A response was counted as incorrect only if it was flatly unenlightened.

Consider one of the economic propositions in the December 2008 poll: “Restrictions on housing development make housing less affordable.” People were asked if they: 1) strongly agree; 2) somewhat agree; 3) somewhat disagree; 4) strongly disagree; 5) are not sure.

Basic economics acknowledges that whatever redeeming features a restriction may have, it increases the cost of production and exchange, making goods and services less affordable. There may be exceptions to the general case, but they would be atypical.

Therefore, we counted as incorrect responses of “somewhat disagree” and “strongly disagree.” This treatment gives leeway for those who think the question is ambiguous or half right and half wrong. They would likely answer “not sure,” which we do not count as incorrect.

In this case, percentage of conservatives answering incorrectly was 22.3%, very conservatives 17.6% and libertarians 15.7%. But the percentage of progressive/very liberals answering incorrectly was 67.6% and liberals 60.1%. The pattern was not an anomaly.

The other questions were: 1) Mandatory licensing of professional services increases the prices of those services (unenlightened answer: disagree). 2) Overall, the standard of living is higher today than it was 30 years ago (unenlightened answer: disagree). 3) Rent control leads to housing shortages (unenlightened answer: disagree). 4) A company with the largest market share is a monopoly (unenlightened answer: agree). 5) Third World workers working for American companies overseas are being exploited (unenlightened answer: agree). 6) Free trade leads to unemployment (unenlightened answer: agree). 7) Minimum wage laws raise unemployment (unenlightened answer: disagree).

How did the six ideological groups do overall? Here they are, best to worst, with an average number of incorrect responses from 0 to 8: Very conservative, 1.30; Libertarian, 1.38; Conservative, 1.67; Moderate, 3.67; Liberal, 4.69; Progressive/very liberal, 5.26.

Americans in the first three categories do reasonably well. But the left has trouble squaring economic thinking with their political psychology, morals and aesthetics.

To be sure, none of the eight questions specifically challenge the political sensibilities of conservatives and libertarians. Still, not all of the eight questions are tied directly to left-wing concerns about inequality and redistribution. In particular, the questions about mandatory licensing, the standard of living, the definition of monopoly, and free trade do not specifically challenge leftist sensibilities.

Yet on every question the left did much worse. On the monopoly question, the portion of progressive/very liberals answering incorrectly (31%) was more than twice that of conservatives (13%) and more than four times that of libertarians (7%). On the question about living standards, the portion of progressive/very liberals answering incorrectly (61%) was more than four times that of conservatives (13%) and almost three times that of libertarians (21%).

The survey also asked about party affiliation. Those responding Democratic averaged 4.59 incorrect answers. Republicans averaged 1.61 incorrect, and Libertarians 1.26 incorrect.

Adam Smith described political economy as “a branch of the science of a statesman or legislator.” Governmental power joined with wrongheadedness is something terrible, but all too common. Realizing that many of our leaders and their constituents are economically unenlightened sheds light on the troubles that surround us.

To be honest, I wish I could say I was surprised… But I can’t. I am not trying to say that Republicans are always correct, but the left really needs to set aside their ideology and start considering actual evidence, rather than feelings, when making economic decisions in the future. If they can do that, perhaps we can start getting this economy and country back on track.

Please pass this blog post or actual article on. Those voters who don’t like making hard decisions must see this information so they are not easily persuaded to support liberal “fantasy-land” solutions to tough economic problems.

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Wonder what you would find if you frisked the latest FOX News poll?

Answer: Americans are worried about the collapse of our economy.

Finally! The average American is starting to become nervous about our enormous national debt and deficits! Or maybe it’s just those who pay attention to FOX News, but either way… Those individuals are the most informed. (Sorry CBS, MSNBC, CNN, and others. There’s just no substance to your arguments or opinions when you consistently refer to a large percentage of Americans as a sexual slur.)

FOX News reports:

Most American voters believe it’s possible the nation’s economy could collapse, and majorities don’t think elected officials in Washington have ideas for fixing it.

The latest Fox News poll finds that 79 percent of voters think it’s possible the economy could collapse, including large majorities of Democrats (72 percent), Republicans (84 percent) and independents (80 percent).

Just 18 percent think the economy is “so big and strong it could never collapse.”

Moreover, 78 percent of voters believe the federal government is “larger and more costly” than it has ever been before, and by nearly three-to-one more voters think the national debt (65 percent) is a greater potential threat to the country’s future than terrorism (23 percent).

Reminder to Democrats: If you continue to spend away on the taxpayer’s credit card – that’s already insanely maxed out – you will be punished at the ballot box in November!

Side-Note: I don’t know why I added that reminder, because I don’t think they will listen anyways…

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