More Smoke & Mirrors in DC

Peter Schiff cuts through Obama's illusions and expresses some common-sense advice:

Endless Taxes Facing Canadians

This new article from Lorrie Goldstein is more than a little disturbing. It shows a growing class system evolving in Canada, separating highly protected public sector employees from private sector employees who face a very different reality.

Based on the figures outlined in the article, I've produced two pie-charts illustrating how much tax has to be paid by Canadians:

Some Timely Wisdom from Bernie Marcus

"Barney Frank would love to kill every entrepreneur out there." - Bernie Marcus, co-founder of Home Depot

Obama the Blunderer

Barack Obama boosters are confident that their Messiah will be remembered for all time as the greatest president in at least 100 years. Perhaps this is what some Jimmy Carter fans once thought too. History has quickly proven the latter wrong and current news headlines may soon proven the former wrong as well.

From the UK comes a very important editorial about the financial bill that Obama deemed "absolutely necessary". And in the Wall Street Journal they focus in on how quickly his "Hope & Change" has turned into pure fear mongering.

After you read it, ask yourself two pertinent questions:

1. If Obama, Pelosi, & Reid were to take $1,000,000,000, place it in a large pit, and light it on fire, would this also be called "stimulus"?
   
   
2. Assuming most people would answer 'No' to that question, then why is it that any money spent on any program, no matter how wasteful or even useless, is now called "stimulus" and considered acceptable by all too many?
   

Sarah Palin's Clothes vs. Barack Obama's Pork

Has anyone else noticed that the same MSM that was obsessed with Sarah Palin's wardrobe budget (estimated to be upwards of $150,000) has absolutely no curiosity whatsoever for how the so-called stimulus funds are going to be spent?

Barack Obama's current "stimulus" package (aka "PorkFest") is sitting at $820,000,000,000. That is Five Million, Four Hundred and Sixty Six Thousand, Six Hundred and Sixty Seven (5,466,667) times more money . . . and yet the the vast majority of the MSM chooses to not question how any of it will be spent.

And those same members of the MSM have the audacity to tell us that they have no particular political bias!

Barack Obama: New Pork is the Old Pork

I received this interesting e-mail and thought it worthy to repost:

The Stimulus Shopping List: $1.17 Trillion in Pork Goodies

Having trouble putting down that cigarette? The stimulus bill has $75 million for programs to help people quit smoking. Only 42 percent of Americans now think the bill is a good idea, according to Rasmussen Reports, which had found 45 percent approval last week. (AP Photo)

The $1.17 trillion stimulus bill passed by House Democrats on Wednesday bears little resemblance to the bill originally proposed by President Obama, with less than 5 percent of the funds now going to repair Americas deteriorating infrastructure.

GOP critics point out the bill is loaded with tens of billions for items ranging from Amtrak subsidies to sexually transmitted diseases to the National Endowment for the Arts -- much of which won't actually flow into the economy until long after economists expect the current economic crisis to subside.

In late November, Obama promised: It will be a two-year, nationwide effort to jump start job creation in America, and lay the foundation for a strong and growing economy. We'll put people back to work rebuilding our crumbling roads and bridges, modernizing schools and stimulating development of alternative forms of energy.

Even some Democrats are now objecting that the measure contains too few highway and mass transit projects. Moreover Mark Zandi, chief economist for Moody's Economy.com, says most of the infrastructure spending in the plan won't occur until 2010 or later.

Keeping in mind that this is supposed to be a stimulus bill, here are provisions of the bill that many legislators are questioning:

• $1 billion for Amtrak, which hasn't earned a profit in four decades.
• $2 billion to help subsidize child care.
• $400 million for research into global warming.
• $2.4 billion for projects to demonstrate how carbon greenhouse gas can be safely removed from the atmosphere.
• $650 million for coupons to help consumers convert their TV sets from analog to digital, part of the digital TV conversion.
• $600 million to buy a new fleet of cars for federal employees and government departments.
• $75 million to fund programs to help people quit smoking.
• $21 million to re-sod the National Mall, which suffered heavy use during the Inauguration.
• $2.25 billion for national parks. This item has sparked calls for an investigation, because the chief lobbyist of the National Parks Association is the son of Rep. David R. Obey, D-Wisc. The $2.25 billion is about equal to the National Park Services entire annual budget. The Washington Times reports it is a threefold increase over what was originally proposed for parks in the stimulus bill. Obey is chairman of the House Appropriations Committee.
• $335 million for treatment and prevention of sexually transmitted diseases.
• $50 million for the National Endowment for the Arts. $4.19 billion to stave off foreclosures via the Neighborhood Stabilization Program. The bill allows nonprofits to compete with cities and states for $3.44 billion of the money, which means a substantial amount of it will be captured by ACORN, the controversial activist group currently under federal investigation for vote fraud. Another $750 million would be exclusively reserved for nonprofits such as ACORN meaning cities and states are barred from receiving that money. Sen. David Vitter, R-La., charges the money could appear to be a payoff for the partisan political activities community groups in the last election cycle.
• $44 million to renovate the headquarters building of the Agriculture Department.
• $32 billion for a smart electricity grid to minimize waste.
• $87 billion of Medicaid funds, to aid states.
• $53.4 billion for science facilities, high speed Internet, and miscellaneous energy and environmental programs.
• $13 billion to repair and weatherize public housing, help the homeless, and repair foreclosed homes.
• $20 billion for quicker depreciation and write-offs for equipment.
• $10.3 billion for tax credits to help families defray the cost of college tuition.
• $20 billion over five years for an expanded food stamp program.
  

Republican leaders say the stimulus package will add 32 new government programs at a cost of $136 billion. They object that many of the programs, once established, are likely to continue indefinitely.

Most media outlets are reporting the cost of the package at $819 billion. As Newsmax revealed yesterday, however, the Congressional Budget Office calculates that the interest on the debt generated by the bills spending will cost another $347.1 billion, making the total cost approximately $1.17 trillion.

Of course, the measure contains hundreds of billions in tax cuts and infrastructure projects that conservatives will find palatable. But as House Minority whip Eric Cantor, R-Va., told the media Wednesday, "This was not a stimulus bill. It was a spending bill."

The Only Thing Great About Barack Obama is His Hypocrisy

After Obama's miraculous 2008 presidential campaign, it was clear that at some point the magical mystery tour would have to end. The nation would rub its eyes and begin to emerge from its reverie. The hallucinatory Obama would give way to the mere mortal. The great ethical transformations promised would be seen as a fairy tale that all presidents tell -- and that this president told better than anyone.

I thought the awakening would take six months. It took two and a half weeks.

---

So writes Charles Krauthammer, in his latest piece, entitled The Fierce Urgency of Pork. It's a must read for anyone still consumed by the Hope & Change promises of Obama.

Remember how we were promised that lobbyists would be banned from Washington? Then how come at least a dozen lobbyists were nominated to high positions within his administration?

Remember how we were told that Obama was one of the smartest people on the planet? Then how come he deferred the writing of this new "stimulus" bill to Nancy "500 Million Americans were laid off" Pelosi?

Were you aware that within the new bill is $88.6 Million destined for construction of new public schools in Milwaukee, Wisconsin? That school district has a shrinking enrollment, 15 vacant schools, and absolutely no plans for new construction. One wonders where those funds will eventually end up?!

Were you aware that within the new bill are hundreds of billions of dollars that won't be spent until at least 2011? What on earth does that have to do with stimulating the economy NOW?

Were you aware that within the new bill $150 Million will be spent on insurance for livestock, honeybees, and farm-raised fish?

It's the same old, same old folks. As the not so old saying goes, you can put lipstick on a pig, but it's still a pig. Oink!

2 Overarching Questions for 2009

Here's a key section from Obama's Inauguration Speech:

The question we ask today is not whether our government is too big or too small, but whether it works -- whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. And those of us who manage the public's dollars will be held to account -- to spend wisely, reform bad habits, and do our business in the light of day -- because only then can we restore the vital trust between a people and their government.

Let's be very generous and give him a year. By January 2010:

1. How many major, wasteful programs do you think will be cut?
   
2. Precisely what will happen to those in the public sector who have poorly managed the public's money?

If he proves wrong my healthy skepticism then I too will become a believer. Otherwise we'll know that these were merely "words, just words" and it'll be same old, same old.

Stimulus Canada

Stimulus Canada, a new federal government department? Hey, anything's possible!

Click on the image to read

What is the Average IQ of the Economic Stimulus Proponents?

For months I've been hearing from countless talking heads that "a massive economic stimulus package is needed in order to save the economy". The fear generated amongst average folk by such talk has necessarily been huge. So I think that most people thought it a good idea for assorted governments to inject (read "spend") endless billions of dollars.

Not me.

It simply has never made any sense to the grey matter between my two ears why one would give money to companies that have clearly made bad mistakes and/or were badly managed from the get go. But spend they did, especially in the United States. And what has it done? Pretty much nothing!

I learned today that of the $50 Billion given to Citibank, already $10 Billion of that has been given to shareholders and executives. Now some of the talking heads are saying, "We should have had more oversight." Huh?!? You give $50,000,000,000.00 to someone and don't place any real controls on how it'll be spent?!?

This is beyond nuts. And yet another reason, my friends, as to why I'm mostly a Libertarian. After all, what will it take for the majority of people to understand that the people in the government will never care nearly as much about spending your money as you will?!

Renewed Wisdom for the Modern Age

" If we can prevent the government from wasting the labours of the
people under the pretense of taking care of them, they must
become happy."

Thomas Jefferson, 1802

The Letter from 122 Top Economists to Congress

To the Speaker of the House of Representatives and the President pro tempore of the Senate:

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses. Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

3) Its long-term effects. If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, America's dynamic and innovative private capital markets have brought the nation unparalleled prosperity. Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

Signed (updated at 9/25/2008 8:30AM CT)

Acemoglu Daron (Massachussets Institute of Technology)
Adler Michael (Columbia University)
Admati Anat R. (Stanford University)
Alexis Marcus (Northwestern University)
Alvarez Fernando (University of Chicago)
Andersen Torben (Northwestern University)
Baliga Sandeep (Northwestern University)
Banerjee Abhijit V. (Massachussets Institute of Technology)
Barankay Iwan (University of Pennsylvania)
Barry Brian (University of Chicago)
Bartkus James R. (Xavier University of Louisiana)
Becker Charles M. (Duke University)
Becker Robert A. (Indiana University)
Beim David (Columbia University)
Berk Jonathan (Stanford University)
Bisin Alberto (New York University)
Bittlingmayer George (University of Kansas)
Boldrin Michele (Washington University)
Brooks Taggert J. (University of Wisconsin)
Brynjolfsson Erik (Massachusetts Institute of Technology)
Buera Francisco J. (UCLA)
Camp Mary Elizabeth (Indiana University)
Carmel Jonathan (University of Michigan)
Carroll Christopher (Johns Hopkins University)
Cassar Gavin (University of Pennsylvania)
Chaney Thomas (University of Chicago)
Chari Varadarajan V. (University of Minnesota)
Chauvin Keith W. (University of Kansas)
Chintagunta Pradeep K. (University of Chicago)
Christiano Lawrence J. (Northwestern University)
Cochrane John (University of Chicago)
Coleman John (Duke University)
Constantinides George M. (University of Chicago)
Crain Robert (UC Berkeley)
Culp Christopher (University of Chicago)
Da Zhi (University of Notre Dame)
Davis Morris (University of Wisconsin)
De Marzo Peter (Stanford University)
Dubé Jean-Pierre H. (University of Chicago)
Edlin Aaron (UC Berkeley)
Eichenbaum Martin (Northwestern University)
Ely Jeffrey (Northwestern University)
Eraslan Hülya K. K.(Johns Hopkins University)
Faulhaber Gerald (University of Pennsylvania)
Feldmann Sven (University of Melbourne)
Fernandez-Villaverde Jesus (University of Pennsylvania)
Fohlin Caroline (Johns Hopkins University)
Fox Jeremy T. (University of Chicago)
Frank Murray Z.(University of Minnesota)
Frenzen Jonathan (University of Chicago)
Fuchs William (University of Chicago)
Fudenberg Drew (Harvard University)
Gabaix Xavier (New York University)
Gao Paul (Notre Dame University)
Garicano Luis (University of Chicago)
Gerakos Joseph J. (University of Chicago)
Gibbs Michael (University of Chicago)
Glomm Gerhard (Indiana University)
Goettler Ron (University of Chicago)
Goldin Claudia (Harvard University)
Gordon Robert J. (Northwestern University)
Greenstone Michael (Massachusetts Institute of Technology)
Guadalupe Maria (Columbia University)
Guerrieri Veronica (University of Chicago)
Hagerty Kathleen (Northwestern University)
Hamada Robert S. (University of Chicago)
Hansen Lars (University of Chicago)
Harris Milton (University of Chicago)
Hart Oliver (Harvard University)
Hazlett Thomas W. (George Mason University)
Heaton John (University of Chicago)
Heckman James (University of Chicago - Nobel Laureate)
Henderson David R. (Hoover Institution)
Henisz, Witold (University of Pennsylvania)
Hertzberg Andrew (Columbia University)
Hite Gailen (Columbia University)
Hitsch Günter J. (University of Chicago)
Hodrick Robert J. (Columbia University)
Hopenhayn Hugo (UCLA)
Hurst Erik (University of Chicago)
Imrohoroglu Ayse (University of Southern California)
Isakson Hans (University of Northern Iowa)
Israel Ronen (London Business School)
Jaffee Dwight M. (UC Berkeley)
Jagannathan Ravi (Northwestern University)
Jenter Dirk (Stanford University)
Jones Charles M. (Columbia Business School)
Kaboski Joseph P. (Ohio State University)
Kahn Matthew (UCLA)
Kaplan Ethan (Stockholm University)
Karolyi, Andrew (Ohio State University)
Kashyap Anil (University of Chicago)
Keim Donald B (University of Pennsylvania)
Ketkar Suhas L (Vanderbilt University)
Kiesling Lynne (Northwestern University)
Klenow Pete (Stanford University)
Koch Paul (University of Kansas)
Kocherlakota Narayana (University of Minnesota)
Koijen Ralph S.J. (University of Chicago)
Kondo Jiro (Northwestern University)
Korteweg Arthur (Stanford University)
Kortum Samuel (University of Chicago)
Krueger Dirk (University of Pennsylvania)
Ledesma Patricia (Northwestern University)
Lee Lung-fei (Ohio State University)
Leeper Eric M. (Indiana University)
Leuz Christian (University of Chicago)
Levine David I.(UC Berkeley)
Levine David K.(Washington University)
Levy David M. (George Mason University)
Linnainmaa Juhani (University of Chicago)
Lott John R. Jr. (University of Maryland)
Lucas Robert (University of Chicago - Nobel Laureate)
Luttmer Erzo G.J. (University of Minnesota)
Manski Charles F. (Northwestern University)
Martin Ian (Stanford University)
Mayer Christopher (Columbia University)
Mazzeo Michael (Northwestern University)
McDonald Robert (Northwestern University)
Meadow Scott F. (University of Chicago)
Mehra Rajnish (UC Santa Barbara)
Mian Atif (University of Chicago)
Middlebrook Art (University of Chicago)
Miguel Edward (UC Berkeley)
Miravete Eugenio J. (University of Texas at Austin)
Miron Jeffrey (Harvard University)
Moretti Enrico (UC Berkeley)
Moriguchi Chiaki (Northwestern University)
Moro Andrea (Vanderbilt University)
Morse Adair (University of Chicago)
Mortensen Dale T. (Northwestern University)
Mortimer Julie Holland (Harvard University)
Muralidharan Karthik (UC San Diego)
Nanda Dhananjay (University of Miami)
Nevo Aviv (Northwestern University)
Ohanian Lee (UCLA)
Pagliari Joseph (University of Chicago)
Papanikolaou Dimitris (Northwestern University)
Parker Jonathan (Northwestern University)
Paul Evans (Ohio State University)
Pejovich Svetozar (Steve) (Texas A&M University)
Peltzman Sam (University of Chicago)
Perri Fabrizio (University of Minnesota)
Phelan Christopher (University of Minnesota)
Piazzesi Monika (Stanford University)
Piskorski Tomasz (Columbia University)
Rampini Adriano (Duke University)
Reagan Patricia (Ohio State University)
Reich Michael (UC Berkeley)
Reuben Ernesto (Northwestern University)
Roberts Michael (University of Pennsylvania)
Robinson David (Duke University)
Rogers Michele (Northwestern University)
Rotella Elyce (Indiana University)
Ruud Paul (Vassar College)
Safford Sean (University of Chicago)
Sandbu Martin E. (University of Pennsylvania)
Sapienza Paola (Northwestern University)
Savor Pavel (University of Pennsylvania)
Scharfstein David (Harvard University)
Seim Katja (University of Pennsylvania)
Seru Amit (University of Chicago)
Shang-Jin Wei (Columbia University)
Shimer Robert (University of Chicago)
Shore Stephen H. (Johns Hopkins University)
Siegel Ron (Northwestern University)
Smith David C. (University of Virginia)
Smith Vernon L.(Chapman University- Nobel Laureate)
Sorensen Morten (Columbia University)
Spiegel Matthew (Yale University)
Stevenson Betsey (University of Pennsylvania)
Stokey Nancy (University of Chicago)
Strahan Philip (Boston College)
Strebulaev Ilya (Stanford University)
Sufi Amir (University of Chicago)
Tabarrok Alex (George Mason University)
Taylor Alan M. (UC Davis)
Thompson Tim (Northwestern University)
Tschoegl Adrian E. (University of Pennsylvania)
Uhlig Harald (University of Chicago)
Ulrich, Maxim (Columbia University)
Van Buskirk Andrew (University of Chicago)
Veronesi Pietro (University of Chicago)
Vissing-Jorgensen Annette (Northwestern University)
Wacziarg Romain (UCLA)
Weill Pierre-Olivier (UCLA)
Williamson Samuel H. (Miami University)
Witte Mark (Northwestern University)
Wolfers Justin (University of Pennsylvania)
Woutersen Tiemen (Johns Hopkins University)
Zingales Luigi (University of Chicago)
Zitzewitz Eric (Dartmouth College)

Source: http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm

Canadian Arts Grants Cut . . . Boo Hoo!

Unbeknownst to most Canadians, $4.7 Million per year has been mostly wasted by our federal government on something called the PromArt program. This liberal slush fund has been used for such things as:

• $3,000 given to Holy Fuck, a Toronto rock band, to travel in the U.K.
• $5,000 given to former CBC broadcaster, Avi Lewis, to let the little darling go to film festivals in Australia & Argentina
• $16,500 given to Tal Bachman, a best-selling recording artist, travel to South Africa and Zimbabwe
• $3,000 given to author Gwynne Dyer, to travel to Cuba
• $18,000 given to The North South Institute, a left-wing anti-globalization "think tank", to attend an anti-Western conference in Cuba (Note: I put "think tank" in quotes because isn't a left-wing think tank an oxymoron?)

On a related note, a few years ago I received a detailed summary from a close friend of how the Canadian film industry works vs. the American film industry. Down south, people come up with project ideas and then go to private sources to get funding. But here in Canada, most filmmakers live entirely off of the public trough (that's your money and mine), figuring out assorted ways to get various grants to fund their projects. In most cases, there's absolutely no expectation that there'll ever be much public interest in their finished work, let alone making a profit. This well known con has been going on for decades.

I can only imagine the reaction from those at the CBC, who have stolen wasted consumed more public money than any other group I know of. They'll be decrying this for the next 20 years. IMHO good riddens!!! And realize that this is probably one of hundreds of government programs that are nothing other than a privileged slush fund. If recipients of such funds were to turn into pickpockets tomorrow nothing much would change in their disgusting behaviour.

Government Parable

Young Chuck, moved to Texas and bought a donkey from a farmer for $100.00. The farmer agreed to deliver the donkey the next day. The next day he drove up and said, "Sorry son, but I have some bad news, the donkey died."

Chuck replied, "Well, then just give me my money back."

The farmer said, "Can't do that. I went and spent it already."

Chuck said, "Ok, then, just bring me the dead donkey."

The farmer asked, "What ya gonna do with him?"

Chuck said, "I'm going to raffle him off."

The farmer said, "You can't raffle off a dead donkey!"

Chuck said, "Sure I can. Just watch me. I just won't tell anybody he's dead."

A month later, the farmer met up with Chuck and asked, "What happened with that dead donkey?"

Chuck said, "I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $898.00."

The farmer said, "Didn't anyone complain?"

Chuck said, "Just the guy who won. So I gave him his two dollars back."

Chuck grew up and worked for the government.

Habitat for Humanity: A Few Questions

Randy Forrester is a 36 year-old lighting fabricator who earns $42,000 per year. He and his family are moving into a 3-bedroom townhouse in Burnaby valued at $325,000. Yet he only has to pay $200,000. Why? Because he got involved with Habitat for Humanity, and donated 500 hours of his time toward the building of his home.

Hmmm, if we divide $125,000 by 500, that works out to $250 per hour. Is Mr. Forrester able to bill out at that rate in the free market? I doubt it.

One can't fault Forrester for simply signing up to a program that is offered to him but why on earth is Habitat for Humanity receiving any public funds?!? Those funds are coming from your taxes and mine. They're also coming from the taxes of people who are making a lot less than $42,000 per year.

I'm convinced that the average person in society wants to help out those who are truly challenged. But is it any wonder that people get cynical when stories like this come to light?

A Little More Insight Into the BC Human Rights Tribunal

In reading their annual report, I've discovered that the chair of this organization is one Heather MacNaughton. Here are their most recent cost figures:

Be sure to click on this image above to see how your hard earned tax money is being spent.

An Infinite Lack of Wisdom

From the great heights of Jimmy Pattison I now take you down to the pathetically small minds of government bureaucrats. Two years ago I learned that the City of Vancouver Parks Board had decided in its infinite lack of wisdom to rename "Spanish Banks" to "Spanish Bank". For those not local to Vancouver, this is a series of beaches that graces the northwestern edge of the city.

Apparently someone had seen the singular version on an old map and the "great minds" at the Parks Board decided that all signage and literature had to be changed! Woo Hoo, a new way to waste the taxpayers money. What a GREAT idea!!!

Idiots! One has to wonder if the cost of such changes were deducted, even in part, from the salaries of the decision makers, would they be so quick to embark on such waste? Sandra Thomas, in her usual whimsical way, has written an hilarious story about this here.