I have seen a couple of different places discuss how the rate of Children in France that would qualify for the ADHD diagnosis is drastically lower than the US the first was a podcast by Tom Woods the second was this article.
Even though I don't have a degree in the matter I am inclined to agree with the statement ADHD is over diagnosed. First I have my self as a bit of evidence- when I was a kid I had that diagnosis and through out my life I was on different types of medications with horrible results, such as- being aggressive, suicidal and just stoned. Some people will say I just needed the right medication- but there comes a point when you have to question the diagnosis. Later in life I was diagnosed with Asperger Syndrome- which is a condition on the Autistic Spectrum.
I was the one who informed my blogging partner about the condition- and I tried my hand at a couple more medications- one left me sedated sleeping most of the day and unable to think straight and the other seemed to have no effect in dealing with my depression. As you can not treat Asperger's with medication and my depression was caused by losing my job and latter getting dumped I felt the medication had very little effect and my psychiatrists took me off of it.
My mother is a special ed teacher who is currently working with autistic children and she claims that there is a tendency to have a label of the day when they are unsure what to do with a child and the people who make the claim that ADHD is over diagnosed tend to believe the issue is really behavioral and social and both places state the French have less tendencies due to how they deal with students and run the schools.
As I have only gone to school in the US and I am not an educational major I can't comment on the theory.
Saturday, July 11, 2015
Saturday, July 4, 2015
Ecco tarriffs
one of the many areas where the status quo has conflicting policies can be seen in the fact many politicians will support free trade while at the same time push for tighter environmental regulations. There are good reasons to support free trade- such as the notion that it will improve life for people around the world and prevent war and promote better understanding- there are also good reasons to be concerned about the environment.
The problem is that the argument for government regulation is that corporations can not be trusted to maintain environmentally safe policies while the argument for free trade is that the free market will benefit the general population and must be encouraged.
You can not hold both beliefs as the same time one of the two must be dismissed- this means either supporting an Eco tariff where you compare the cost of meeting regulations in the US vs those of other nations and taxing the difference or coming up with a free market solution to protecting the environment. I would prefer to look at the free market solutions that protect private property- which would include consumer advocacy and education, along with union negotiations and may be law suits so companies will be forced to pay restitution when their pollution harms people and their livelihood.
If a toxic chemical can not be dumped in the Red River between Oklahoma, Texas- where I grew up- then I don't want to see it dumped in the Red River in Vietnam.
The problem is that the argument for government regulation is that corporations can not be trusted to maintain environmentally safe policies while the argument for free trade is that the free market will benefit the general population and must be encouraged.
You can not hold both beliefs as the same time one of the two must be dismissed- this means either supporting an Eco tariff where you compare the cost of meeting regulations in the US vs those of other nations and taxing the difference or coming up with a free market solution to protecting the environment. I would prefer to look at the free market solutions that protect private property- which would include consumer advocacy and education, along with union negotiations and may be law suits so companies will be forced to pay restitution when their pollution harms people and their livelihood.
If a toxic chemical can not be dumped in the Red River between Oklahoma, Texas- where I grew up- then I don't want to see it dumped in the Red River in Vietnam.
Friday, July 3, 2015
immigration- the real issue we need more jobs and better real pay globally.
Our current immigration system is a mess- as we have an unofficial open border , the politicians are discussing giving amnesty to people here illegally then to make the political matters worse we have the 14th amendment giving birth right citizenship.
As a nation we need to ask what is wrong with having an honest policy and either enforcing the laws as written or adopting an official open border policy?
The main arguments against adopting an open border policy are the following.
1.) the notion that modern immigrants don't try to adopt to the US culture. Most of the immigrants family's I have met at least the kids speak English and they try to keep the heritage of the old country as well as claim that of the US.
2.) The fear immigration will overwhelm welfare roles- this was one of the reasons that New Zealand has such strict immigration polices -they don't let anyone in except the rich. The issue here is however is the government welfare system and not immigration. If a program either private or public is successful it will be a hand up. One of the reasons I prefer private charities over government welfare programs is the simple fact I can go to places like Charity watch and give my money to what ever program I believe is the most effective at helping people.
3.) depressed wages- When ever you have to many people and not enough jobs you can expect depressed wages the best way to improve the situation would be more jobs. The only way that will happen is to have more business opening up and possibly growing- this is why in my posts on the minimum wage I talk about the importance of regulatory, tax, regulatory tort and monetary reform.
There are regulations that make it hard to start a new business like a city that only has a limited number of taxi licences and others that make it expensive to hire the 50th employee both sets of regulations form a tag team against the poor after all some rich person might be interested in taking some large gamble that will shake up some given industry but feel unable to do so.
Going from country to country should simply be called moving and all the economic objections people might give should be countered with proposals to end those objections with more liberty.
As a nation we need to ask what is wrong with having an honest policy and either enforcing the laws as written or adopting an official open border policy?
The main arguments against adopting an open border policy are the following.
1.) the notion that modern immigrants don't try to adopt to the US culture. Most of the immigrants family's I have met at least the kids speak English and they try to keep the heritage of the old country as well as claim that of the US.
2.) The fear immigration will overwhelm welfare roles- this was one of the reasons that New Zealand has such strict immigration polices -they don't let anyone in except the rich. The issue here is however is the government welfare system and not immigration. If a program either private or public is successful it will be a hand up. One of the reasons I prefer private charities over government welfare programs is the simple fact I can go to places like Charity watch and give my money to what ever program I believe is the most effective at helping people.
3.) depressed wages- When ever you have to many people and not enough jobs you can expect depressed wages the best way to improve the situation would be more jobs. The only way that will happen is to have more business opening up and possibly growing- this is why in my posts on the minimum wage I talk about the importance of regulatory, tax, regulatory tort and monetary reform.
There are regulations that make it hard to start a new business like a city that only has a limited number of taxi licences and others that make it expensive to hire the 50th employee both sets of regulations form a tag team against the poor after all some rich person might be interested in taking some large gamble that will shake up some given industry but feel unable to do so.
Going from country to country should simply be called moving and all the economic objections people might give should be countered with proposals to end those objections with more liberty.
Monday, June 29, 2015
basic principles
I'm stepping back to cover some basic principles that guide my thoughts on politics and society.
1. TANSTAAFL- There ain't no such thing as a free lunch. This phrase gets tossed about a bit and it relates to the fact everything in life does have some opportunity costs even things that don't cost you money. For example if I am sitting on the couch watching classic "Doctor Who" while chatting with Truthseaker on Yahoo IM- there are tons of other things I could be doing at that point in time but I am not on the simple grounds I would prefer to watch classic "Doctor Who" and chat with Truthseaker.
2. Voluntary exchange is always better than force- this is one of the many problems with government mandates. If Marry hires Bill and Ted to paint her house for example- you might not like the details of the contract- for example they might agree to do the job for less money than you or a different paint- but you don't right do dictate pay rates- you would have room to complain if they were using a toxic paint that would harm you and your property.
3.) Murphy never sleeps- Murphy's law is what ever can go wrong will go wrong when Murphy is on the job. This is one of the classic problem with all political promises. Every time a politician proposes a new law, program or what not they will always paint a rose picture where the proposal pays for itself and life is some how better. So you need to think about what they expect things to work and as many ways that things can go wrong- and alternatives to accomplish the goal.
4.) Be contestant but feel free to change your mind as you get new information. This might sound contradictory but it is not. The constancy is about ideology, morality and logic not your opinion on individual positions. As one quote from a British politician accused of flip-flopping goes "When my information changes my opinion changes- do you do the same sir."
1. TANSTAAFL- There ain't no such thing as a free lunch. This phrase gets tossed about a bit and it relates to the fact everything in life does have some opportunity costs even things that don't cost you money. For example if I am sitting on the couch watching classic "Doctor Who" while chatting with Truthseaker on Yahoo IM- there are tons of other things I could be doing at that point in time but I am not on the simple grounds I would prefer to watch classic "Doctor Who" and chat with Truthseaker.
2. Voluntary exchange is always better than force- this is one of the many problems with government mandates. If Marry hires Bill and Ted to paint her house for example- you might not like the details of the contract- for example they might agree to do the job for less money than you or a different paint- but you don't right do dictate pay rates- you would have room to complain if they were using a toxic paint that would harm you and your property.
3.) Murphy never sleeps- Murphy's law is what ever can go wrong will go wrong when Murphy is on the job. This is one of the classic problem with all political promises. Every time a politician proposes a new law, program or what not they will always paint a rose picture where the proposal pays for itself and life is some how better. So you need to think about what they expect things to work and as many ways that things can go wrong- and alternatives to accomplish the goal.
4.) Be contestant but feel free to change your mind as you get new information. This might sound contradictory but it is not. The constancy is about ideology, morality and logic not your opinion on individual positions. As one quote from a British politician accused of flip-flopping goes "When my information changes my opinion changes- do you do the same sir."
Wednesday, June 24, 2015
Oklahoma Surgical center- why aren't they the typical clinic ?
Healthcare is an important issue for us- as you as you will know from reading other posts my friend and blogging partner Truth Seeker- was born with 4 forms of Congenital heart defects so the importance of affordable healthcare is not lost on us. On the build up to Obamacare- the supporters were quite fond of stating how much faster medical expenses have grown compared the the ecconomy as a whole- I believe some figures were saying as much as 10 times as much as the general rate of inflation.
This is an issue that must be fixed in order to determine how to do that we must ask the simple question how did we get in this mess?
The first clue might be found with the Oklahoma surgical center this is a clinic that offers up front pricing and claims that other clinics charge several times more than they do- on their webpage they like to point to operations where their total cost was less than the co-pay at other clinics.
Their founder claims in his blog that they are the exception instead of the rule because the current US healthcare system is a scam filled mess that that hurt consumers.
The first being the Certificate of Needs laws which- used to exist at the federal level but now exist at the state level in all but 14 states- which are built around the notion that limiting the number of clinics providing a service would some how limit the prices. Their supporters would claim that this is because the medical industry for some reason is different than the rest of the ecconomy and is exempt from basic laws of economics .
Then we have programs like Medicaid Disproportionate Share Hospital (DSH) Payments which was set up to reimburse healthcare providers that were losing money treating uninsured and patients. The problem according to Dr. Keith Smith- in his videos title the $100 aspirin is that the program has institutionalized abuse as hospital might jack up a bill by by 100000% as they know people would not be able to pay- then claim a loss and collect 5% of the bill which would be 500% more than they should have charged in the first place. The problem is not solved by more insurance due to claims repricing programs where an insurance company will get a bill negotiate it down then charge a claims repricing fee based on the percent they claim to have saved the policy holder. These videos paint an image where hospitals are not struggling due to giving away free care but rolling around in cash because they gouge the public with the DSH program and will fight any plan to either end or reform the program in a cost saving manner tooth an nail.
Any healthcare reform needs to favor a free market approach if you were to reform the DSH program- the easiest part of any reform might be putting a limit on what you will pay for some medicine- for example you can buy a bottle of aspirin 500 tablets for $3.60 at Walmart there is no reason for a hospital to believe they can get buy with charging $5 for a single pill. The harder part would be to determine a DSH reform where you have hospitals competing and driving down prices to a market clearing level which is exactly what I would expect to happen if the program was ended.
While there are some people who are battling horrible conditions and should get help for the medical battles and I will do what I can for them- but these people should be the exception and not the rule- and the Oklahoma surgical clinic does provide some clues on how to improve the medical system.
This is an issue that must be fixed in order to determine how to do that we must ask the simple question how did we get in this mess?
The first clue might be found with the Oklahoma surgical center this is a clinic that offers up front pricing and claims that other clinics charge several times more than they do- on their webpage they like to point to operations where their total cost was less than the co-pay at other clinics.
Their founder claims in his blog that they are the exception instead of the rule because the current US healthcare system is a scam filled mess that that hurt consumers.
The first being the Certificate of Needs laws which- used to exist at the federal level but now exist at the state level in all but 14 states- which are built around the notion that limiting the number of clinics providing a service would some how limit the prices. Their supporters would claim that this is because the medical industry for some reason is different than the rest of the ecconomy and is exempt from basic laws of economics .
Then we have programs like Medicaid Disproportionate Share Hospital (DSH) Payments which was set up to reimburse healthcare providers that were losing money treating uninsured and patients. The problem according to Dr. Keith Smith- in his videos title the $100 aspirin is that the program has institutionalized abuse as hospital might jack up a bill by by 100000% as they know people would not be able to pay- then claim a loss and collect 5% of the bill which would be 500% more than they should have charged in the first place. The problem is not solved by more insurance due to claims repricing programs where an insurance company will get a bill negotiate it down then charge a claims repricing fee based on the percent they claim to have saved the policy holder. These videos paint an image where hospitals are not struggling due to giving away free care but rolling around in cash because they gouge the public with the DSH program and will fight any plan to either end or reform the program in a cost saving manner tooth an nail.
Any healthcare reform needs to favor a free market approach if you were to reform the DSH program- the easiest part of any reform might be putting a limit on what you will pay for some medicine- for example you can buy a bottle of aspirin 500 tablets for $3.60 at Walmart there is no reason for a hospital to believe they can get buy with charging $5 for a single pill. The harder part would be to determine a DSH reform where you have hospitals competing and driving down prices to a market clearing level which is exactly what I would expect to happen if the program was ended.
While there are some people who are battling horrible conditions and should get help for the medical battles and I will do what I can for them- but these people should be the exception and not the rule- and the Oklahoma surgical clinic does provide some clues on how to improve the medical system.
Saturday, June 13, 2015
Living wage conclusions
Tax, Tort, Regulatory and monetary reform as long with ending subsidies needs to be brought up whenever the minimum wage is discussed especially when someone make the claim that it in fact was relatively higher.
When someone makes the claim it was someplace between 30% and 300% higher in 1968- it is vital to ask the simple question why the did the real value drop with out a decrease in unemployment?
I have seen many people state the reason was greed- the problem is this would be like the FAA blaming a plane crash on gravity- which was constant through the entire flight.
Colonel Sanders, Ray Kroc, Dave Thomas and every other business man will naturally look at how to maximize their profits - that is simply the nature of business, so I try to look at what has changed since the late 1960's or if they bring up Australia- what is different between both nations.
Your standard of living is not based on how much money you have in your pocket- rather it is completely based on what you can buy with that money and that in turn is based on society's productivity levels and competition.
A good example of this is to simply think about the quality of life has changed over the course of the past few centuries.
Next it is important to remember there is no such thing as a free lunch - in life there are always trade offs and Failure to understand this fact is magical thinking which is doomed to fail.
This is the reason that I ask everyone who wants to see a $15 minimum wage especially if they site the the US in the past or Australia- why are prices so high in the modern US?
I don't expect CEO's to cut their own pay but instead- reduce hours for those people the increase would effect, decrease quality and increase prices so the value of $1 would drop so that the quality of life you could afford on $15 would be a lot closer to what you can currently afford on $8 today.
I don't pretend that there might not be any negative side effects for ending subsidies and conducting the forms. I just claim they will affect fewer people and be over quicker.
I am not saying we should toss every regulation out- I am though saying we should look at costs and benefits because Australia might just be proof that it will result in drastic price cuts with reasonable environmental and safety standards.
When someone makes the claim it was someplace between 30% and 300% higher in 1968- it is vital to ask the simple question why the did the real value drop with out a decrease in unemployment?
I have seen many people state the reason was greed- the problem is this would be like the FAA blaming a plane crash on gravity- which was constant through the entire flight.
Colonel Sanders, Ray Kroc, Dave Thomas and every other business man will naturally look at how to maximize their profits - that is simply the nature of business, so I try to look at what has changed since the late 1960's or if they bring up Australia- what is different between both nations.
Your standard of living is not based on how much money you have in your pocket- rather it is completely based on what you can buy with that money and that in turn is based on society's productivity levels and competition.
A good example of this is to simply think about the quality of life has changed over the course of the past few centuries.
Next it is important to remember there is no such thing as a free lunch - in life there are always trade offs and Failure to understand this fact is magical thinking which is doomed to fail.
This is the reason that I ask everyone who wants to see a $15 minimum wage especially if they site the the US in the past or Australia- why are prices so high in the modern US?
I don't expect CEO's to cut their own pay but instead- reduce hours for those people the increase would effect, decrease quality and increase prices so the value of $1 would drop so that the quality of life you could afford on $15 would be a lot closer to what you can currently afford on $8 today.
I don't pretend that there might not be any negative side effects for ending subsidies and conducting the forms. I just claim they will affect fewer people and be over quicker.
I am not saying we should toss every regulation out- I am though saying we should look at costs and benefits because Australia might just be proof that it will result in drastic price cuts with reasonable environmental and safety standards.
Monday, June 8, 2015
Living wage part V- monetary reform part II
I mentioned shortly about people screaming for inflation becuse it lowerd real wages. A good example of that can be seen in this article by Kevin Drum of Mother Jones Magazine titled Why High Inflation is Good in a Recession.
The basic claim is that in a recession the biggest obstacle to recovery is the phenomena is sticky wages which is caused by employers who for some reason are not wanting to cut wages.
His entire plan to unstick wages- is to go print out a bunch of money to devalue wages as employers are refusing to do it.
My understanding of economics states that no matter how bad the ecconomy is- that the only reason that an employer would be reluctant to cut your pay is because there is still demand for the goods and services that the company is providing. Now Kevin Drum is arguing for a higher minimum wage.
If Kevin Drum or anyone else advocating inflation to solve the "problem of sticky wages" honestly believes the biggest problem facing the ecconomy is that wages are not adjusting then they should advocate repealing the minimum wage and if he has honest concerns about the standard of living for the poor then he should have advocated letting deflation run it's course.
The primary argument that people will bring up against repealing the minimum wage is the fear it doing so will hurt the poor by lowering real wages across the board. However if someone were to turn around and sight sticky wages as an argument for inflation which is common among Keynesian economists then they can not use this argument as they are expecting that inflation will decrease real wages across the board.
If there was no minimum wage- companies will try to cut pay the concept of sticky wages states that they will be reluctant to cut a good employees wages especially if they are making money. There is a chance that wages might fall with out prices falling- and there are two reasons that this might happen. The first is the ecconomy quickly starts to recover and people prefer to pay a few bucks over standing in line so companies hire more people for example starting pay might fall from $9 to $6 so a company might hire 3 people instead of two so it is now easier to get a job and at some point prices will settle with close to 0% unemployment.
On the other hand if you simply allow inflation to run it's course a Keynesian would argue that the higher real wages would lead to more unemployment as employers are reluctant to hire new people and would automate and off shore jobs that consumers would prefer to have done by a person in the US.
The problem with this argument is that they will make the claim that increasing the minimum wage will lead to higher real wages because employers for some miraculous don't automate or move jobs off shore or raise their prices to accommodate the higher costs.
Letting deflation happen may result in jobs getting moved off shore and automated but as prices are going down consumers will have more purchasing power which means they might have the money to hire people to do other jobs and you might have some jobs come open as people decide to retire.
In either of the two situations the way to reduce the possible bad side effects would be if it was easier to start and grow a business which takes us back to tax tort and regulatory reform. People who object to the idea of having a minimum wage- will inevitably support tax, tort, regulatory and monetary reform and ending subsidies as they expect it to reduce the cost of running a business which in turn will mean higher real wages due to a mixture of lower prices and unemployment depending on consumer preferences.
My next post will be the last on the subject
The basic claim is that in a recession the biggest obstacle to recovery is the phenomena is sticky wages which is caused by employers who for some reason are not wanting to cut wages.
His entire plan to unstick wages- is to go print out a bunch of money to devalue wages as employers are refusing to do it.
My understanding of economics states that no matter how bad the ecconomy is- that the only reason that an employer would be reluctant to cut your pay is because there is still demand for the goods and services that the company is providing. Now Kevin Drum is arguing for a higher minimum wage.
If Kevin Drum or anyone else advocating inflation to solve the "problem of sticky wages" honestly believes the biggest problem facing the ecconomy is that wages are not adjusting then they should advocate repealing the minimum wage and if he has honest concerns about the standard of living for the poor then he should have advocated letting deflation run it's course.
The primary argument that people will bring up against repealing the minimum wage is the fear it doing so will hurt the poor by lowering real wages across the board. However if someone were to turn around and sight sticky wages as an argument for inflation which is common among Keynesian economists then they can not use this argument as they are expecting that inflation will decrease real wages across the board.
If there was no minimum wage- companies will try to cut pay the concept of sticky wages states that they will be reluctant to cut a good employees wages especially if they are making money. There is a chance that wages might fall with out prices falling- and there are two reasons that this might happen. The first is the ecconomy quickly starts to recover and people prefer to pay a few bucks over standing in line so companies hire more people for example starting pay might fall from $9 to $6 so a company might hire 3 people instead of two so it is now easier to get a job and at some point prices will settle with close to 0% unemployment.
On the other hand if you simply allow inflation to run it's course a Keynesian would argue that the higher real wages would lead to more unemployment as employers are reluctant to hire new people and would automate and off shore jobs that consumers would prefer to have done by a person in the US.
The problem with this argument is that they will make the claim that increasing the minimum wage will lead to higher real wages because employers for some miraculous don't automate or move jobs off shore or raise their prices to accommodate the higher costs.
Letting deflation happen may result in jobs getting moved off shore and automated but as prices are going down consumers will have more purchasing power which means they might have the money to hire people to do other jobs and you might have some jobs come open as people decide to retire.
In either of the two situations the way to reduce the possible bad side effects would be if it was easier to start and grow a business which takes us back to tax tort and regulatory reform. People who object to the idea of having a minimum wage- will inevitably support tax, tort, regulatory and monetary reform and ending subsidies as they expect it to reduce the cost of running a business which in turn will mean higher real wages due to a mixture of lower prices and unemployment depending on consumer preferences.
My next post will be the last on the subject
Thursday, May 28, 2015
Living wage part IV monetary reform- part 1
A lot of people who support raising the minimum wage will sight inflation as a reason to do so. When I see this come up I always ask- what is the reason for the inflation and suggest that we would be better off with out inflation and bring up the reason for inflation.
Inflation is a monetary phenomena caused by an expansion of the money supply from a mixture of fractional reserve banking, government over spending and money printing.
First fractional reserve banking- the way our banks operate is the following. 100 people deposit $1000 in the bank-on the 15th then they turn around and lend $50,000 on the 16th. They still tell the first group of people they all of $1000 available to them but they have only $50,000 in the bank. So the money supply has grown and as it does prices start to rise.
Rising prices tell companies to produce more while consumers buy less which results in this inflationary trend reversing until people feel things are cheap enough they want to buy and companies cut back on production.
When prices are increasing across the board due to monetary inflation- it is hard to tell where consumer demand lies. So if it were completely up to the banks they would start raising interest rates which sends the signal to people who have debt to pay it down and for those who don't to save their money. Eventually the money supply will shrink and prices will start to drop.
Fractional reserve banking is still dangerous as a bank that makes the wrong call they won't be able to cover their depositor's money.
There have been two extreme ways to deal with the risks of fractional reserve banking-the newest is a central bank and the older has been to ban fractional reserve banking.
The argument for a central bank is that you need a lender of last resort backed up with tax dollars the problem with this answer is that it basically ends up centralizing interest rates. Now if the central bank has interest rates set to low and refuses to increase the rate- now the market gets confused. The low interest rates send the signal to borrow money but because the average person has little to no money in the bank they are not in a position to buy big ticket items or to fund the long term investments and thanks to the inflation it becomes hard to tell what prices are increasing because of consumer demand.
The reason that a lot of people like Ben Bernanke object to the idea of falling prices is on the notion that they will inevitably ruin the ecconomy- as people will stop buying things and stop paying on their debts and will start hoarding money and some will bring try to sell the fact it lower real wages.
The alternative view simply calls stuffing your cash is a mason jar a form of savings- and expect to see the consumer base for a particular product to expand as prices fall.
In the next part I will talk more about where fear of falling prices will lead some people.
Inflation is a monetary phenomena caused by an expansion of the money supply from a mixture of fractional reserve banking, government over spending and money printing.
First fractional reserve banking- the way our banks operate is the following. 100 people deposit $1000 in the bank-on the 15th then they turn around and lend $50,000 on the 16th. They still tell the first group of people they all of $1000 available to them but they have only $50,000 in the bank. So the money supply has grown and as it does prices start to rise.
Rising prices tell companies to produce more while consumers buy less which results in this inflationary trend reversing until people feel things are cheap enough they want to buy and companies cut back on production.
When prices are increasing across the board due to monetary inflation- it is hard to tell where consumer demand lies. So if it were completely up to the banks they would start raising interest rates which sends the signal to people who have debt to pay it down and for those who don't to save their money. Eventually the money supply will shrink and prices will start to drop.
Fractional reserve banking is still dangerous as a bank that makes the wrong call they won't be able to cover their depositor's money.
There have been two extreme ways to deal with the risks of fractional reserve banking-the newest is a central bank and the older has been to ban fractional reserve banking.
The argument for a central bank is that you need a lender of last resort backed up with tax dollars the problem with this answer is that it basically ends up centralizing interest rates. Now if the central bank has interest rates set to low and refuses to increase the rate- now the market gets confused. The low interest rates send the signal to borrow money but because the average person has little to no money in the bank they are not in a position to buy big ticket items or to fund the long term investments and thanks to the inflation it becomes hard to tell what prices are increasing because of consumer demand.
The reason that a lot of people like Ben Bernanke object to the idea of falling prices is on the notion that they will inevitably ruin the ecconomy- as people will stop buying things and stop paying on their debts and will start hoarding money and some will bring try to sell the fact it lower real wages.
The alternative view simply calls stuffing your cash is a mason jar a form of savings- and expect to see the consumer base for a particular product to expand as prices fall.
In the next part I will talk more about where fear of falling prices will lead some people.
Wednesday, April 8, 2015
living wage part III regulations
A lot of times the
opponents of regulatory reform appear to hold the view that the
regulatory process involves climbing the top of Mount Rushmore where
they fast and pray until Teddy Roosevelt, Woodrow Wilson, and FDR
write the new code on a stone tablet that is delivered by a bald
eagle and can never be altered lest the nation faces plagues and
famines of epic proportions and we should never question them.
While this is a bit
of a joke the fact remains that the opponents of regulatory reform-
argue there is no problem with how regulations are written, claim
line of the code will pass a cost risk analysis and seem to believe
business might lose money if they hurt their customers.
First the regulatory
agencies that enforce the regulations and benefit from a larger code
are the same people writing the code. The basic process goes as
following they propose a regulation, have a hearing where different
people comment- some times people with in the industry the regulation
will affect will come out in favor as they believe it will eliminate
competitors then finally the agency implement the regulation. The
fact this happens was shown quite clearly when Mitt Romany said we
need regulations to prevent people from opening banks in their
garage.
As regulations are
the law of the land this violates the constitution which requires
that congress make the laws and for the president to sign or veto
them and creates a conflict of interest as the more an agency
regulates the easier it will be for them to request more money from
congress. Right now the first step to fixing this problem is the
REINS act which would require congress to vote on a regulation if it
is expected to cost more than $100 million.
There might be good
arguments for some regulations- but just because those exist does not
mean every regulation falls into those categories so we need to
remove some regulations.
so we have the cost
of existing regulation- and the ways they hurt the average consumer.
The first way is by
making it harder to enter a field- this could be done by limiting
licenses, fees, or by limiting how a company could distribute their
product.
A few examples of
the last are the fact there are laws in some states that prevent car
companies from owning their own dealership, next we have regulations
that prevent a new cable company from opening up in your town.
There are also some
regulations in 36 states called Certificate of needs laws which
basically state that in order to open a new clinic or hospital you
would need to get the permission of existing health care facilities.
The argument given for the CON laws is that limiting the supply of
health care options will some how decrease prices by eliminating
duplication. While economics 101 states that restricting supply of
anything leads to higher prices.
No matter what level
of government has imposed these regulations- you need to ask what is
the real problem if someone tried to run a particular industry from
their house? If they risk blowing up the neighborhood there might be
some logic be hind that. If the business is just loud and bothers the
neighbors that is fine- but if your argument for a regulation banning
someone from selling home made cookies is the possibilities of food
poisoning- that is a little harder to accept because in improperly
sanitized industrial kitchen will result in you being as sick as an
improperly cleaned home kitchen.
Bernie Madoff ran
his scam from a push office
and there are people
running small banks and savings and loans in Europe from offices that
barely above their garage.
like his
documentary the bank of Dave show or RT report show.
https://www.youtube.com/watch?v=0fIGZOe-Oa0
Next there are
regulations which limit growth- the regulations with small business
exemptions will often fall into this category. People argue the
exemptions need to exist because specific regulation is expensive and
only a company with 50 employees would have the money to afford it.
This creates the situation where a company with 49 employees will not
hire employ number 50- unless they know they can cover the cost which
the big business in a field won’t have to worry about small fast
growing innovative companies from challenging them. So if you
honestly think a regulation is to expensive for a small company- then
you need to explain why it isn't to expensive for the consumers
and if you honestly think a company that grosses $1 billion dollars
should not do some thing then why is it fine for 1000 companies that
gross $1 million to do the same thing?
Then there are
regulations designed to counter the negative effects of older
regulations which we see with net neutrality- supporters point to the
regional cable monopolies to say we need it instead of going after
the regulations which created the monopolies in the first place.
The benefits of
deregulation might even show up on one of the favorite memes in
support of raising the minimum wage- the one that claims Australia has
a minimum wage of $14 US and the unemployment rate is about the same
as ours.
In the 1980’s and
1990’s the Australians and New Zealanders did tax and regulatory
reform-and the country did not fall apart so bad that Mad Max is a
documentary and they aren't dropping dead left and right due to air and water pollution down under.
The goal of regulatory reform should be sliming the code down so the rules are the same for every company in a field and to eliminate the parts of the code where the costs out weigh the benefits.
So if $14 in
Australia bought roughly what it does in the US and the unemployment
rate uses the same calculation methods that the US does- then you
should consider that this is because the tax and regulatory reform
freed up enough cash to enable companies to pay $14- and as I stated
before if you can make a profit starting people at $15 and charging
today’s prices then the same process could bring down prices and
given the choice I would rather see prices drop and wages stay the
same over seeing wages increase and prices staying the same as the
first will help savings go farther.
Sadly there a lot of
politicians and economists who would rather have the higher wages
which leads to the next topic monetary reforms.
Tuesday, April 7, 2015
Living wage part II-Tax reforms and subsidies
I am discussing
these two in the same entry as a lot of subsidies come in the form
of tax credits. First let’s talk about tax reform by starting with
the poster boys Warren Buffet and Mitt Romney.
A lot of people will
claim tax reform will only benefit the rich- however Warren Buffet
claims he pays a lower tax rate than his secretary
The tax issue is one
of the reasons I can’t stand Warren Buffett- he goes on TV
screaming his taxes are to low and asking for the “Buffett Rule”
while in private he seems to believe the real Buffet rule- is “if
you are Warren buffet you don’t pay taxes
http://nypost.com/2011/08/29/warren-buffett-hypocrite/.”
I digress- the two
of them both have such low tax rates because they are able to
structure their business in such a way to avoid as taxes as best as
they can. I don’t blame someone for wanting to do that so my
biggest issue with Mitt was the fact when he had a chance to address
the issue- he avoided details and seemed to quite ignorant on the
subject.
He was proposing to
reduce loopholes and and deductions and lowering the right. When
Obama claimed that this had never been done before- Mitt could have-
stated that both JFK and Ronald Reagan did that.
I consider this to
be the bare minimum that needs to be done with tax reform ideally we
should go farther- and adopt something a long the lines of a flat tax
or sales tax.
Examining the pros
and cons of those tax proposals is beyond the scope of this post- as
this is about why it needs to be done.
The first issue when
discussing tax return is simplicity- I don’t care if some one like
Warren Buffet or Mitt Romany- only pay 10% in taxes but I do care how
they get that rate and this is the first failing of our current tax
system. The amount of loopholes, credits and deductions- the argument
for the lot is to shape behavior and some are designed to favor
certain industries- which is the case with the green energy and
renewable fuel mandates.
Subsidies no matter
what their form is- are designed to give a boost to economic
activities that would otherwise be unprofitable or less profitable.
Let's take the green
energy mandates- the stated goal is to make America carbon neutral by
encouraging bio-fuel, wind and solar power with subsidies.
A person's choice to
buy any of these products should be based completely on their
advantages and disadvantages compared to the alternative and not a
government subsidy or tax credit. Some time the reason their
supporters give in congress is terrifying for example this lobbyist
stating one of the goals of the ethonal mandate is to increase the
price of corn- then he tries to argue it does not effect people
because it was feed corn and not sweet corn.
If the price of corn
were to drop- then perhaps you might be able to cut the budget for
food stamps- by making it so fewer people will qualify. I could hear
some people screaming this might harm the US farm industry- but if
the bottom falls out of the corn market- perhaps farmers will change
crops
or may be some one
will find away to make corn based bio-fuel profitable. I don't know
what is possible- but I do know when the economics side is market
driven- people will save money some how.
This might be cheap
food, cheap fuel or ideally both.
The next area to
simplify the tax system is removing the progressivity. The main
arguments for a progressive tax system are the ideas- that the rich
benefit proportionality more from the government than other people
and the idea the government should be redistributing income with out
thinking that policies like a fiat currency and low interest rates
are leading to inequality, or asking the question do people drop in
and out of income brackets or the negative effects of catering to
envy- like reduced investment, reduced savings, both of which can
lead to reduced employment or the possibility that increased taxes
might just lead to increased prices.
The charts that show
a growing income inequality tend to claim that this trend has existed
since the 1970’s- they will normally blame taxes and come out to
support a tax system that did not exist back then- perhaps there are
other issues could be causing the situation as I fail to see how this complex tax code helps the poor or how taxing someone else more would help me either as I expect them to pass the cost of their higher tax rates to everyone else
Thursday, March 26, 2015
a living wage - introduction
While I am opposed
to a $15 minimum wage- I would love to see everyone get a living
wage.
I would agree 100%
with the notion that every full time employee should be able to make
enough money to rent or buy a house buy enough food to feed
themselves and take care of a dependent.
However- raising the
minimum wage will not allow this and the only way to make this dream
a reality is for people to have higher real wages which mean low
unemployment and lower prices.
The notion that
raising the minimum wage will result in a higher standard of living
across the board is simply magical thinking.
First- in order for
a higher minimum wage to mean anything for the bottom rung prices
would have to remain the same or at least increase less than the
minimum wage increase.
So when these posts
pop up I start talking about regulations, taxes subsidies , tort and
monetary reforms which the people supporting a higher minimum wage
will automatically dismiss under the claim that would only help the
rich then state that executives at McD’s make $8 million a year.
The supporters of a
higher minimum wage seem to believe that if you simply raise the
minimum wage- the executives will simply cut their own pay and it
would be enough to cover the increase with out raising prices or
cutting jobs which leads me to conclude that they believe that the
bulk of a burger’s price is the CEO’s pay instead of the
executives pay being a small cut of the burger’s price and selling
millions of burgers.
If they made their
money from mark up- then it would be reasonable to believe that they
could make money if they cut their prices. If they made their money
in volume – there would be little room to alter pay or other costs
upward. As lower prices tend to attract more customers- a company
that offers lower prices might be more profitable than one with
higher prices. We must also remember that industries with high
profit margins- no matter what the cost of entry is will attract new
competitors who will bring down prices.
Another fact to
remember as well- is that when the cost of running a business goes
up- companies will find ways to cut costs, raise prices or go out of
business- all of which harm the poor the most.
So any answer that
increases the cost of business must be rejected- and we must look for
other answers.
If the fast food
giants are big because they keep their prices low- decreasing the
cost of business will lead to lower prices. I will go though my next
few entries addressing each point starting with subsidies and taxes,
then monetary reform and finally tort and regulatory reform.
I am looking at
these things- as all I would expect to happen with a minimum wage
increase- is for people to loose their jobs and prices to increase
unless something offsets the higher wages. So let’s look things
that could lower the cost of business- there is a chance that it
might not increase the buying power of $7.25- however if that does
not happen the trade offs could be more raises, more well paying jobs
and lower unemployment making it easier for people to climb the
economic ladder- which is the common goal.
Wednesday, March 25, 2015
Who should be on the $20 dollar bill?
http://www.womenon20s.org/candidates
There is a move to put a woman on the $20- Over all I don't have any objections as long as it is the right woman. My top two candiates are Harriet Tubman and Sojourner Truth.
Both Women were instrumental in starting the underground railroad- which helped a lot of people escape slavery and it was the nation's first civil rights battle.
There is a move to put a woman on the $20- Over all I don't have any objections as long as it is the right woman. My top two candiates are Harriet Tubman and Sojourner Truth.
Both Women were instrumental in starting the underground railroad- which helped a lot of people escape slavery and it was the nation's first civil rights battle.
Tuesday, March 17, 2015
Saint Patrick - a voice for liberty
As a paleo-conservative/libertarian and Christian who supports the free market and believes the non aggression principle ( all people should be free to make the choices they believe will benefit them with out threat of violence, coercion or fraud.) and Luke 6:3
Do to others as you would have them do to you.
are both the best summery of all moral code was greatly moved when I saw on a couple of websites that Saint patrick was a very vocal opponent of slavery.
(http://www.americancatholic.org/Messenger/Mar1997/feature1.asp#F3 ,http://faithworks.crs.org/our-hero-st-patrick-of-ireland/ )
I know his history and how he was kidnaped and sold as a slave in ireland then escaped and returned as a priest. I am not surprised he would be an enemy of slavery. However reading it just made me feel blessed about him choosing to by my patron and reminded me why the theology of the icon and my belief in individual liberty walk hand and hand.
All arguments for liberty are based on the simple idea- being an individual human means we must be treated with some degree of dignity. The bible states we are created in the image and likeness of God.
Saint patrick knew and understood this- I'm not going to speculate what he would say about the world today only- that belief in the dignity of the individual is a corner stone of liberty.
Friday, February 6, 2015
Congenital Heart Defects (Why I care, and why YOU should)
If I’m posting this on
time, then today should be February 6th 2015. Tomorrow starts Congenital
Heart Defect Awareness Week.
Faces of CHD: from left to right, Bo, 1996-Still Alive, Matthew, 1996-2003 (May his memory be Eternal), Chelsea 1994-Still Alive |
The definition of a
Congenital heart defect is a structural problem with the heart or main arteries
that develops before birth. Here’s the sad thing. Every year in the United
States, 1 out of every 112 live births, or roughly 40,000 babies, are born with
at least one heart defect. 1 in 5 of those 40,000 will require corrective
surgery in their first year in order to save their lives.
CHDs and birth defects in
general tend to come in clusters, so a child born with a heart defect, may have
more than one, and/or also have other muscle problems, problems with the
function of other organs, immune system problems, and the possibilities are
actually endless.
There are 40 different
known kinds of heart defects, ranging from those that don’t interfere with the
function of the heart and amount to little more than an internal birthmark, all
the way to those that require full heart transplants in order for the patient
to have any chance of surviving to adulthood.
The scary thing about CHD
is that it is more common and more fatal than all forms of pediatric cancer
combined, and yet research into the causes, detection, and treatments of CHD as
a whole, is disturbingly underrepresented in terms of government research
funding.
What is sad, is that when
we as people pay attention, we have proven we CAN save these children’s lives.
In 1994 it was expected that 50% of CHD babies born that year would die before
he or she reached their eighteenth birthday. In 2014 that rate had fallen to
35%, the reason? There are a few.
1.
Better and Earlier treatment. Thanks to advances
in medicine that make life saving surgeries safe and possible earlier in life,
and drugs and machinery such as the Berlin Heart, that help keep children
healthier otherwise and alleviate the strain of everyday life on their hearts,
therefore helping prevent further damage to the heart while they are waiting
for surgery, fewer children are dying and/or suffering long-term damage before
they can receive the treatment they need.
2. Better
detection: The fact is, that unless the required treatment IS a full heart
transplant, lack of treatment options isn’t usually to blame for most CHD
related deaths these days. More often than not, it is because the CHD isn’t
detected and treated in time. There are a few ways of detecting CHDs, including
prenatal ultrasound, neonatal ultrasound, detection of a heart murmur, labored
breathing, cyanosis (lack of Oxygen which is apparent in a blue/grayish tint to
skin around the mouth and fingernails), or the use of a pulseoximity meter.
Pulsox is more accurate, cheaper, less time consuming and less invasive than
almost any other method at our current disposal for detecting CHDs in babies
that appear healthy. For this reason, most states now have it on their list of
neonatal medical tests that are mandated by law. Of the 8 states that currently
don’t, (Washington, Idaho, Montana, Wyoming, Colorado, Kansas, Hawaii, and
Mississippi) Mississippi has introduced legislation which if passed would
require pulseox as a newborn screening, Hawaii has a similar bill already in
the works, and in the remaining six that have yet to make laws requiring it,
Wyoming and Kansas are currently considering it, and a majority of hospitals in
all 6 states are using pulseox as a normal part of their own protocol.
Here’s a map detailing
current Pulsoximeter legislations:
Still the sad fact
remains that of the 40,000 CHD babies born last year, 14,000 of them STILL will
not live to see the big 18, and in the year 2015, that’s appalling.
If you would like to help, there are several ways to do
it.
You could donate to the
organizations where most of the funding for research is coming from.
Here is
a link that will help you learn more about pusloximeter screening and allow you
to sign a petition to enact legislation in your state if it does not currently
have one:
Or, starting
tomorrow, wear red, support the cause!
Monday, January 19, 2015
An Eye for an eye will make the world blind
http://news.yahoo.com/europes-muslims-feel-heat-backlash-paris-terror-123511491.html
After the Hebo massacre there has been an increase in the number of attacks on Mulsims and other people the attacker think looks Muslim.
These attacks whether or not they end with the loss of life should be considered just as much of an act of terrorism as the Hebbo shootings, as they are designed to terrorize and intimidate the local Muslim population.
This cycle of violence must stop- We need to take a moment and seek to be peace makers.
I've read places claim that there are sections of France Paris which are basically under Sharia law and that Kufari (non-muslim) enter at the risk of their own lives, Which I am inclined to believe is nothing but irrational anti-Muslim propaganda as studies show that at least around Paris when surveyed Muslims will state they consider themselves to be French, view religion as important and are appalled by violence.
http://www.euro-islam.info/country-profiles/city-profiles/paris/
Some people might try to say the 2005 riots disprove these studies -however the riots and high crime rates simply show there are some thugs in the community and the attacks mentioned in the article above show that Non-Muslim French have their share of violent thugs as well. The streets of Paris were designed so Napoleon could shoot cannons at rioters.
The problem is We have violent individuals committing acts of violence and not enough people preaching and practicing peace and tolerance. There are multiple reasons people turn violent and all should be discussed. Today is Martin Luther King Jr day and I believe we shouldn't simply think about the issues of race in the US but of all violence between people for reason of "race" religion and what have you and ask- what can we do as individuals to make things better.
After the Hebo massacre there has been an increase in the number of attacks on Mulsims and other people the attacker think looks Muslim.
These attacks whether or not they end with the loss of life should be considered just as much of an act of terrorism as the Hebbo shootings, as they are designed to terrorize and intimidate the local Muslim population.
This cycle of violence must stop- We need to take a moment and seek to be peace makers.
I've read places claim that there are sections of France Paris which are basically under Sharia law and that Kufari (non-muslim) enter at the risk of their own lives, Which I am inclined to believe is nothing but irrational anti-Muslim propaganda as studies show that at least around Paris when surveyed Muslims will state they consider themselves to be French, view religion as important and are appalled by violence.
http://www.euro-islam.info/country-profiles/city-profiles/paris/
Some people might try to say the 2005 riots disprove these studies -however the riots and high crime rates simply show there are some thugs in the community and the attacks mentioned in the article above show that Non-Muslim French have their share of violent thugs as well. The streets of Paris were designed so Napoleon could shoot cannons at rioters.
The problem is We have violent individuals committing acts of violence and not enough people preaching and practicing peace and tolerance. There are multiple reasons people turn violent and all should be discussed. Today is Martin Luther King Jr day and I believe we shouldn't simply think about the issues of race in the US but of all violence between people for reason of "race" religion and what have you and ask- what can we do as individuals to make things better.
Bishop IAKOVOS and Martin Luther King JR. |
Monday, January 12, 2015
Liberté, égalité, fraternité- what a crock
This article is talking about how France is turning into a totalitarian nightmare- with a national speech code as well as a national dress code.
I don't see a big difference between the mentality of some one who would kill a bunch of offensive idiotic trolls for publishing an offensive magazine or a government agent who would fine them for publishing the same magazine.
I just wish more people would embrace the most famous quote attributed to Voltaire.
" I disapprove of what you say, but I will defend to the death your right to say it."
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