Sickening

Sen. Rand Paul reminds us that the debt compromise only cuts from the “baseline;” that is, it only cuts from projected increases so we’ll still be adding $7 trillion to the debt over the next 10 years. As he says, this is sickening.

To paraphrase Jim DeMint: When you’re speeding toward the edge of a cliff, you don’t set the cruise control. You stop the car.

The current deal to raise the debt ceiling doesn’t stop us from going over the fiscal cliff. At best, it slows us from going over it at 80 mph to going over it at 60 mph.

This plan never balances. The President called for a “balanced approach.” But the American people are calling for a balanced budget.

Seriously people, we need a balanced budget amendment. Our leaders will never figure out on their own that they shouldn’t buy stuff they cannot afford. We need to force them to stop the car, revoke their license, and turn it around ourselves.

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Wikiot

Back on April Fools’ Day, the Urban Dictionary Word of the Day was wikiot, a portmanteau of wiki and idiot. It is defined as “a fool who believes all information found on Wikipedia is accurate and true,” and it’s usage example is:

Michael Scott, from NBC’s The Office, upon claiming “Wikipedia is the best thing ever. Anyone in the world can write anything they want about any subject, so you know you are getting the best possible information,” solidified himself among the ranks of wikiots.

I was reminded of this new term by a recent comment from Barney Frank, where he said:

“The trouble with new media is the fact that there’s no screen. Anyone can publish anything. We still have the notion that if it’s printed it has some validity. Previously, you had to convince at least one other person that it was worth printing. Now, anyone can print anything in this medium. In general, there’s a lot more gossip and fragmentation. People are starting to just get reinforcement in the media. On the left, it’s MSNBC, Fire Dog Lake and The Huffington Post. On the right, it’s Fox News and the talk radio hosts. People interpret facts differently through these parallel universes. It’s what makes compromise so hard because your partisans just think you’re selling them out because that’s what everyone they know says. It deepens and sharpens a partisan and ideological divide.”

While you would be a fool to believe everything you read on the internet, you’d be a bigger fool to believe we were better off before the advent of personal publishing, when there were only a few gatekeepers publishing only what matched their own agendas. So while the character Michael Scott’s line is funny, it reveals several truths about the internet.

The internet is the best thing ever precisely because anyone in the world can write anything they want. Lacking a screen isn’t the trouble with new media, it is what makes it great. And because of the self-correcting nature of the internet, I believe you do end up with the best possible information. Of course, there is a greater onus on the reader to verify sources and help determine what is the best possible information, but before the interent, that ability rested in the hands of a privileged few. With all the competition today, you don’t have to convince one person that your message is worth printing, you have to convince all of you readers everyday.

So why is Mr. Frank so upset with today’s newfangled technology? It’s because he and his ilk used to be the gatekeepers, the screeners, the censors. They’ve lost control over information dissemination and they are losing control of their power as a result. Ideas that used to be suppressed have the opportunity to thrive on the internet, as evidenced by the events of the Arab Spring. Care to venture a guess what might happen in China when the history of Tiananmen Square can no longer be censored?

Mr. Frank worries that the new media “deepens and sharpens a partisan and ideological divide.” This is a valid point, but it’s a good thing. The truth has a magical ability to make you pick sides. The MSM is dying because new media has laid bare the media bias and given people greater access to the truth.

With insight like this, let’s just be thankful that Mr. Frank doesn’t have the type of control over the internet as is currently being exercised in Syria, and previously in Egypt and Libya.

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Give Them an Inch, and They’ll Take a Mile

In Mitt Romney’s speech announcing his candidacy, he said, “we are only inches away from ceasing to be a free market economy.”

First things first. I don’t exactly think Mitt Romney has any free market bona fides considering the state-wide takeover of healthcare he led in Massachusetts, which served as a beta release of Obamacare. Abridging the freedom of contract and forcing the individual mandate at the state level, as opposed to doing so at the federal level, does not make you a free marketer. He’s posing as the cure to our long march towards socialism, but he is part of the cancer.

But my real issue with his statement is, that by extension, it means we currently have a free market economy and are only just now approaching the point where that won’t be the case anymore. I beg to differ. We don’t have a free market economy. Sometimes calling it a mixed economy feels generous.

Our economy is manipulated (poorly) from the biggest overarching pieces like interest rates and monetary supply, to the smallest details like requiring a license to be a florist, to be an interior decorator, to braid hair, or to have a lemonade stand. Let’s explore just a taste of the unfree parts of our market that are in between these extremes.

Of course, in a country where 1 in 3 need government permission to do their job, as opposed to 1 in 20 sixty years ago, I could go on and on. We aren’t “inches away” from losing our free market status. We blew past that line ages ago and we are now watching the mile markers zip by.

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Thank You

If I could afford to buy the men and women of our military and intelligence communities a round of drinks for their unwavering dedication resulting in last night’s news, I would. Hopefully this simple message will suffice; congratulations and thank you for introducing Osama Bin Laden to the long arm of American justice.

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The First Rule of Holes: When you’re in one, quit digging.

The moral of the story in this Seuss-esque poem is that when you’re in a hole, you need to quit digging. Be sure to enjoy the whole thing, but here’s a snippet of The jubjub hole:

So there they all stood, pointing fingers and yelling
While below them the black hole kept growing and swelling.
And then at the moment of greatest confusion
The panel announced it had reached a conclusion:
The Kingdom of Whatsis was bound for disaster.
The Spendits all nodded, then Spent even faster.

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Happy Tax Day!

No, I’m not actually celebrating Tax Day, but there is something to be happy about. The internet has exposed the Leftward bias in the media, it is helping to take down the MSM, it has served as a backbone for those striving for freedom, and it is now a check against those willing to commit genocide. This is all possible because the internet has knocked down the barriers for spreading information. So on Tax Day let’s celebrate an increased awareness of what our government spends the money it takes from us on.

Thanks to Google and some of their partners we can see a very detailed view of where our money goes. Take a look at some of the entries in the Data Viz Challenge:

Having a good idea of where our money goes is one step in the right direction, but I can think of two more steps to take to really get people making decisions based on this information. First, Tax Day should coincide with election season. And second, we could end automatic withholding of taxes from our paychecks. If Americans had to turn over 20-30% of their yearly earnings to the government in one lump sum, out of their own bank accounts, and then went out to vote a week or two later, I think we’d see some interesting results at the polls. An added bonus of the second step is that tax payers could invest their money throughout the year and make a few bucks before the tax man comes to takes it away.

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March Madness

Can you afford to spend 8 times more than your monthly revenue? I didn’t think so. But our government did just that in the month of March, and it’s poised to continue down the same reckless path. If you’re spending 90% of your monthly revenue, you should probably take that as a warning sign that it’s time to scale back. But 800% is ridiculous. How many warning signs did they have to miss to get to this level of spending?

“I’m really concerned,” [Erskine] Bowles told the committee last month. “I think we face the most predictable economic crisis in history. A lot of us sitting in this room didn’t see this last crisis as it came upon us. But this one is really easy to see. The fiscal path we are on today is simply not sustainable.”

As predictable as this problem is, some still choose to ignore it because it conflicts with their ideology. But for others, maybe the numbers have grown to such absurd levels that they just don’t make sense anymore. A trillion here, and a trillion there? It’s like we are playing with Monopoly money now.

To bring some perspective to these astronomical numbers, it helps to measure them against some that are easier to comprehend. For this we turn to Iowahawk, with Feed Your Family on $10 Billion a Day, and the following video from Declaration Entertainment based on the same post.

Governments simply can’t be trusted to do the right thing. That’s why we have a Constitution in the first place. Our Constitution limits our government to specific, enumerated powers. Of course, these limits are sidestepped all the time in the name of “security” or “emergency” as we yield our liberty and government gains ground.

But since this is the natural progress of things, it is our responsibility to see that the government stays within the confines of the Constitution. I believe that the best way to turn the tide of government overreach is a balanced budget amendment to the Constitution. Government overreach is largely made possible by its ability to borrow against the future. If government is allowed to spend more than it brings in, it will. There is no evidence to the contrary. Since government cannot be trusted to constrain its own spending, deficit spending should be made illegal.

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Don’t Buy Stuff You Cannot Afford

The government should “shut down” until it learns this simple lesson. But it won’t learn it without our help. We need a balanced budget amendment.

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Living in a Bubble

Governor Scott Walker exposes the problems with unionized labor with this simple example:

In 2010, Megan Sampson was named an Outstanding First Year Teacher in Wisconsin. A week later, she got a layoff notice from the Milwaukee Public Schools. Why would one of the best new teachers in the state be one of the first let go? Because her collective-bargaining contract requires staffing decisions to be made based on seniority.

Unionized public labor (public employment in general, really) creates market distortions like this all of the time. Can you imagine a Rookie of the Year getting cut because he doesn’t have seniority? Or can you imagine the most incompetent employee getting paid a full salary for years on end, without doing a minute of work, because he has tenure? When you impede market forces, ridiculous and unintended consequences like this happen.

Public employees are living in a bubble. They have become a protected class thanks to the feedback loop buttressed by collective bargaining where politicians steal more money from the taxpayer, who hand it over to the unions, who in turn spend it on elections for politicians that will continue the cycle.

Tenure and guaranteed job security, pay based on seniority instead ability, defined benefit pension plans, and the like are all foreign ideas to the vast majority of Americans who work in the private sector and are actually accountable to their employers. Popping this bubble, and allowing the market to work, is the best and only moral way to fix the problems in education.

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It’s Math

“A country that doesn’t ever balance its budget will go bankrupt. That’s not a threat. It’s math.”

This nugget of wisdom, which is obvious to any 3rd grader with at least a C average in arithmetic yet has been Greek to those in Washington for the last few generations, comes courtesy of Senator Jim DeMint as he explains our fiscal situation in plain english:

Endlessly borrowing more money to spend more money is a ruinous economic strategy, yet that’s exactly what leaders in Washington are proposing.

President Obama wants to raise the debt ceiling for the fourth time since he entered office to allow the government to keep up its big spending spree. Keep in mind, Congress has voted to raise the debt ceiling 10 times in the past 10 years— twice in 2008 and 2009. Both parties bear responsibility. Since 1990, the debt has increased over 450%, from $3 trillion to over $14 trillion today. It’s on course to nearly double in the next 10 years, to $26 trillion.

Washington will never voluntarily shrink its size until it is forced to by law. Republicans should oppose another debt limit increase unless Congress first passes a balanced budget amendment that requires a two-thirds majority to raise taxes.

A balanced budget amendment is sorely needed now because the debt is rising bigger and faster than it ever has, like a wave cresting with more force and power as it approaches land. Without anything to block it, the debt wave will break and overtake everything in its path.

If we do not confront this now, we are choosing to bury our children and grandchildren in debt.

I fear that Senator DeMint is exactly right in that “Washington will never voluntarily shrink its size until it is forced to by law.” Politicians can talk a good game about reducing spending and balancing the budget, but inevitably, they fold in the face of losing votes if they cut somebody’s cherished entitlement. The answer is to outlaw deficit spending with some form of a balanced budget amendment, thus forcing politicians to make the difficult choices they are currently unwilling to make. Clearly the debt ceiling isn’t enough of a deterrent if they are willing to blow past it 10 times in 10 years.

Forcing our government to spend only what in takes in could be the panacea to most of our problems. It would reign in our absurd entitlements, eventually pushing them out to the private sector, and it may help push other poorly managed programs to the private sector as well. It would curtail or stop the introduction of new entitlements because the viability of new measures would have to be thoroughly vetted before higher taxes, or offsetting cuts in the budget, were accepted. This in turn would leave special interests and lobbyists with a little less power because their pet projects would have less of a chance of success. Wars would also be harder to enter because of a similar vetting process. And most importantly, a balanced budget amendment would stop the hidden inflation tax because there would be no debt to monetize.

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