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The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Archive for June 8th, 2010

Zogby tests ideological groups on knowledge of economics. Guess which group failed.

Posted by iusbvision on June 8, 2010

This is priceless. Shortly before graduation I argued with a PhD in full cloak of infallibility mindset that if we bailed out Greece it would undermine the confidence in the Euro and she argued that if we didn’t bailout Greece it would tank the Euro. History shows that I have won that argument (I am still debating if I should send said professor a note to gloat).

This conclusion was not brain surgery. The EU has rules for yearly deficits and total debt as a percentage of GDP. Greece violated those rules and when the EU went to bail them out and let them keep using the Euro it showed that the entire promise and reason for the Euro, a responsible currency that would be managed well and not turn into a fiat debt currency, was all baloney. Confidence was in fact undermined quicker than I anticipated. Loss in an economic system helps clear away bad management, bad governments, bad risk takers and those who are not serving their customers well. Loss is critical for an economy to work and function and loss is exactly what the leftist European model is designed to prop up. This is exactly what Europe does not understand.

Via the Wall Street Journal

The Zogby test questioned 6 ideological groups with 8 simple questions on basic economics.

Those who are very conservative by average missed 1.30 questions

Libertarians missed  1.38

Conservatives missed 1.67

Moderates missed 3.67

Liberals missed 4.69

Progressive missed 5.26.

Here are the 8 questions: The tested were asked if they: 1) strongly agree; 2) somewhat agree; 3) somewhat disagree; 4) strongly disagree; 5) are not sure.

1 – Restrictions on housing development make housing less affordable.

2 – Mandatory licensing of professional services increases the prices of those services

3 – Overall, the standard of living is higher today than it was 30 years ago

4 – Rent control leads to housing shortages

5 –  A company with the largest market share is a monopoly

6 –  Third World workers working for American companies overseas are being exploited

7 –  Free trade leads to unemployment

8 – Minimum wage laws raise unemployment

To see the WRONG answers click HERE.

Number 6 and 7 are the two that most people will argue with and I have the answer to the objections in advance.

In regards to number 6:  while there are a few cases in which people can point to that show that some workers in third world countries were exploited by American companies, for the most part these are jobs that are in demand in developing countries and over time their standard of living is raised. There are a few exceptions but for the most part this is true. Most jobs go overseas not so much for just the cost of labor but for the cost of government and the business climate.

In regards to number 7: “Free Trade” usually does not cause unemployment, unbalanced “Free Trade Agreements” however often do. Free trade happens between fair and for the most part free market economies. China encourages the creation of wealth the United States’s regs and environment disincentives it. The USA has the second highest corporate income tax rate in the industrialized world, China’s is low. The USA has a high capital gains tax rate, China has none. The USA is paralyzed with regulatory uncertainty by a government that is out of control, China thrives to have a stable and predictable business environment that rewards success. Where would you invest and take risk?  

Says Klein:

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

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

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

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


 ** New web site coming soon.

Posted in 2012, Campus Freedom, Indoctrination & Censorship, Chuck Norton, Economics 101, True Talking Points | 2 Comments »

What you need to know about the Israeli/Gaza naval blockade Featuring Liz Cheney and George Will.

Posted by iusbvision on June 8, 2010

Do you see how Huffington and Moulitsas try to set up a narrative which undermines the legitimacy of the blockade and make Israel that bad guy for defending itself, but when challenged directly on the blockade and Israel’s right to defend itself they back down, because if they answered the question consistent with their narrative liberal Jews would come out against them. They are trying to be hostile to Israel while riding the fence. 

Moulitsas says that “Israel could do the blockade differently” – Ok how, when a boat tries to run the blockade and the people who stop the boat are attacked with pipes and knives and are forced to shoot in self-defense …. let me put it this way …. OK Markos Moulitsas if a crowd of people attack you with pipes and knives what would YOU do that as so “different”.

Markos Moulitsas runs the “DailyKOS” smear site that has a long history of antisemitism. The fact that ABC treats him with even the smallest degree of credibility tells you just how morally bankrupt the elite media has become.  

We blockaded Cuba to prevent arms from going in. Countries that have been the victim of attack have a right to blockade the offending party. It is perfectly legitimate and consistent with international law to set up a blockade for weapons like Israel has. Arianna pulls a very slippery argument designed to confuse the audience at home saying that international law demands that there be no “collective punishment” but that has never applied to sanctions approved by the UN or blockades for weapons. How are the people of Gaza being punished?  All humanitarian supplies are allowed into Gaza as long as the cargo is inspected first.

**New web site coming soon by the way.

Posted in 2012, Chuck Norton, Israel, Journalism Is Dead | Leave a Comment »