Soylent Green Snake

Hillary Clinton has a new economic plan. In essence, government should get actively involved to make everyone’s wages higher.

Government control of the means of production…hmmm…I’ve heard that somewhere before… 🙂

Paul Krugman, writing in The New York Times, endorses the idea. There was a time when Krugman dismissed rhetoric like Clinton’s as economic quackery. These days he’s trying to sell the same snake oil as the politicians.

The Agenda is The Agenda. And Class Warfare is one of the great succors or The Left. They can’t conceive of life without it.

Here is what economists know and it’s backed by mountains of research. Employees tend to get paid their marginal product – the value they add to final output.

In a competitive market this is almost a truism. Wages are not a gift. They are not at one level, but could have been substantially higher or lower. They are what they are because of the employees’ skills and the market value of what they produce.

Now suppose that were not the case. Suppose there was a firm that paid employees more than their marginal product. That would mean the firm is collecting less from customers at the margin than it is paying out in wages. The firm can try to raise prices to cover the deficit, but then it would lose sales to rivals whose costs are lower and it would eventually go out of business. Or it could cover the deficit with lower profits. But then the investors would fire the manager and hire someone who gets the wages right and provides a market rate of return.

Suppose that there was a firm that paid employees less than their marginal product. In that case, rival firms would hire the employees away – since they are worth more than what they are being paid.

To summarize: A firm that pays workers more than they are worth cannot survive because it cannot match the prices and the rate of return to investors of its rivals. A firm that pays workers less than what they are worth, cannot survive because it will not be able to retain its employees. Competition in the marketplace tends to determine wages; there is a definite logic to what people are paid; and it has nothing to do with miserliness or generosity.

Therefore, Liberals want to eliminate competition thus everyone is equal and their are no winner and no losers. Just like the liberal version of youth sports where no one actually loses.

Competition is evil. So it must be destroyed. Competition is “unfair” and full of nothing but “inequality”.

Also, economists know there is no free lunch.

Unless, they are Liberal adherents to The Agenda, then they are all about the perception of “the free lunch” or the “greedy” capitalist who is a Scrooge and miserly old white privilege asshole.

If one person has a gain – in the absence of any increased production — someone else must endure a loss.

And since that is “unfair” Liberals demand everyone to be equal which holy unrealistic, but then again so are Liberals.

And we know a lot about those losses. For example, when government forces employers to pay higher wages, employers react by reducing other types of spending on their employees – less training and fewer fringe benefits, such as health insurance.

Close down and move to Mexico…Offer less hours of work at that higher pay, say 29. 🙂

On balance it appears that employees are left worse off. After a survey of the literature, economist Richard McKenzie wrote:

[I]f the minimum wage were raised to $10.10 an hour, for example, the estimated 16.5 million workers earning between $7.25 and $10.10 could lose non-monetary compensation more valuable than the $31 billion in additional wages they are expected to receive.

But Liberal work on perception, not reality. So that shiny new toy in the window look good from the outside, but once you own it and start playing with it, you find out just how cheaply made it was and it begins to fall about.

But don’t worry, The Liberal has that covered to! It’s called “victimization” where you are the victim of the evil, greedy capitalists! It’s not your fault you fell for their dog crap hook-line-and-sinker, it’s their fault!

How amazing is that. You took a bite of the apple of socialism and it the snake bit you, but it’s still the snake’s fault! And all you need is for the Liberal to come in and tell you that it was the snake fault and that if you take another bite it will STILL be the snake’s fault so why not go ahead…

In defense of Hillary, Krugman writes:

[E]mployers always face a trade-off between low-wage and higher-wage strategies — between, say, the traditional Walmart model of paying as little as possible and accepting high turnover and low morale, and the Costco model of higher pay and benefits leading to a more stable work force. And there’s every reason to believe that public policy can, in a variety of ways — including making it easier for workers to organize — encourage more firms to choose the good-wage strategy.

Liberalism a snake charmer, not a snake oil salesman, says the snake oil salesman.

But here’s the thing. What works for Costco workers may not work for Walmart workers. And in any event does any rational person think that government should make decisions about these tradeoffs rather than competitors in the marketplace?

Yes, Liberals. 🙂

The other day The New York Times had two contrasting editorials on its op ed page. One, by Paul Krugman, called for a higher minimum wage and other labor market interventions. The other, by the chairman of Starbucks and his wife, Howard and Sheri Schultz, noted that:

[There are] 5.6 million people ages 16 to 24 in America who are not employed or in school. While some have lost hope in this population … we believe these young people represent a significant untapped resource of productivity and talent. With the right support and training, they can benefit our businesses and our communities.

The Schultz’s have formed a foundation and with the aid of other foundations and high profile companies their goal is to “provide jobs, internships and apprenticeships to 100,000 young people over the next three years.”

Although they don’t say so, their editorial clearly implies that the wage that is paid to these youths doesn’t really matter. What matters is they learn the life skills of showing up for work on time, following orders, conducting themselves in appropriate ways, etc. If they learn those skills, their wages will rise through time without any help from government.

Krugman, Clinton and others on the left say there is no economic harm in raising the minimum wage and in adopting other polices that close off job opportunities for those at the bottom of the income ladder. In making this statement they are ignoring the social costs. The Schultz’s write:

[T]he cost of youth disconnection — including health care, public assistance and incarceration — was $26.8 billion in 2013 alone. Quite literally, we can’t afford to do nothing.

And then there are the personal costs, which do not easily lend themselves to calculation in terms of dollars and cents.

I suspect these costs are not of much interest to either Krugman or Clinton. (John C Goodman)

Snake Oil is how much a barrel?

Let’s not forget that those who have their wage increased suddenly find themselves no longer “qualified” to receive governmental benefits and pay higher taxes out of that higher wage.

We’ve already seen that where the “newly waged” want fewer hours so that they don’t lose their benefits.

Which probably explains why they don’t understand the reasoning behind how a wage gets set.

Secondarily, many unions tie their wages to the minimum wage level by some multiplier or other offset. Which means that costs will be going up in those businesses as well.

Krugman and others are dishonest for continuing to promote wage pandering.
But Liberals are never about the truth, but about what gains them power. And keeping people ignorant and jealous plays right into that.
(Townhall)

Keep them stupid, mad, and needy, that’s the Liberal plan. It keeps the Liberals pundits, advocates, and Politicians on their own gravy train.

Liberal version of Soylent Green, just grind them up and feed them back to themselves and make them happy for you and made at everyone else.

Not Easy Being Green

“Today’s high gas prices are a painful reminder that there’s much more work to do to free ourselves from our dependence on foreign oil and take control of our energy future,” Obama said in a statement on the energy report. “We have made progress.”

Nearly two-thirds of those polled said they did not approve of his handling of the situation with gas prices.

Yeah, we haven’t had a “green” company go bankrupt this week and cost taxpayers millions. 🙂

Happy days are here again!

Wanna Good Laugh…

One ad telling you to vote Obama because you make two gallons of gas an hour — and with minimum wage at $7.25, you can now say it’s 1.5 gallons of gas an hour — and two hitting W. for the high cost of gas.

You think the president has an “emoticon” of compassion (thank you Meghan McCain) for the last president by now?

Nah. He’s too busy “playing politics while [we] pay at the pump.” (Kate Hicks)

Phoenix Bus Strike- More Green or Else!

A union of greedy liberals are at it again. Anyone who has read my blog for any time knows how much I hate Unions and how greedy they are. This is another example.

These union hacks make $44,000 a year with generous benefits and they are mad that they don’t get even more!

Who cares if the City has budget shortfalls and there’s a recession on and lots of people are unemployed.  They want EVEN more!

Side Note: The Democrat minority in the Legislature proposed a budget that SPENDS EVEN MORE money. Nice to see some things never change no matter what. 🙂

Spokeswoman Michael said the two sides are negotiating over sick-leave provisions, wage scales and other pay and benefit issues.

And even if you give them more, a few years down the line they’ll be back like a plague of locusts to demand even more. They are drug addicts and their drug is money and they are a pack of addicts.

While car-centric metro Phoenix didn’t grind to a halt from the strike like other major metros would, the service disruption hit the blue-collar, lower-middle-income segments disproportionately.

According to a survey Valley Metro conducted of passengers between October 2010 and February 2011, about 62 percent of transit riders who ride only the bus reported annual household incomes of less than $30,000. About 29 percent of survey respondents said they had no other means of transportation.

But, like most liberals, it’s all about them! Screw the Poor! 🙂

“I’m willing to go out as long as it takes,” <Bus Driver> Ortega said. “If it’s for another day or another year, we’re fighting for our rights.”

But some Liberals are unrepentantly delusional.

Melinda McConnel, 35, had waited more than an hour for a bus at the Central Station Transit Center on Monday to head to a homeless shelter for lunch. The wait is usually less than 15 minutes, she said.

But McConnel, who said she has participated in both Occupy Los Angeles and Occupy Phoenix protests, said she supports the workers on strike.

“It doesn’t matter if I walk 1 mile or 10 miles, as long as the 1 percent isn’t taking from the 99 percent yet again,” McConnel said.

Yeah…whatever… 😦

THE “JUSTICE” DEPARTMENT AT IT AGAIN – More Pandering for Greenbacks!

Eric Holder and his Hispanic Voter/ Pro-Illegal kiss-ass jackboots are at it again.

The hacket man, Ass’t AG Thomas Perez, the same guy who refused to pursue the already-convicted Black Panthers! The same guy who made the ‘we are going to tell you specifically’ Justice Dept Charges against Sheriff Joe.

The Obama administration blocked Texas (BEESTX)’s new law requiring voters to show government-issued photo identification at the polls, escalating a partisan dispute over voting restrictions.

The U.S. Justice Department used its power under the Voting Rights Act to halt the Texas law, saying in a letter to the state today that the measure may disproportionately harm Hispanics. The department in December blocked a similar law in South Carolina (NFSESC).

Requiring people to prove they are who they say they are and are here Legally is “racist” after all.

So what if you need an ID to Rent a Movie, it’s “racist” to require it for voting.

After all, the Illegal Alien Vote is a bloc that Obama is actively courting.

“Their denial is yet another example of the Obama administration’s continuing and pervasive federal overreach,” Texas Governor Rick Perry said in a statement.

The Justice Department’s decision isn’t final. Texas and South Carolina have filed suit in federal court in Washington seeking permission to enforce their photo ID requirements.

Under the Texas law signed last year by Perry, voters who arrive at the polls without one of seven acceptable forms of photo IDs issued by the state or federal government, including concealed carry handgun permits, would be given a provisional ballot, according to the Texas Secretary of State’s website.

The law exempts mail-in ballots and voters with significant disabilities or religious objections to being photographed.

Including a Concealed Carry permit, gee, can I say that’s a very “liberal” requirement. 🙂

But, remember, this is a State Government Intrusion! And it’s “racist”!!

Hispanic registered voters in Texas are 47 percent to 120 percent more likely to lack the required identification than non-Hispanic voters, the Justice Department said in its letter. Texas has 12.9 million registered voters of whom 2.81 million are Hispanic. (and how many of them are illegal?)

120%???  Say What?!

“Even using the data most favorable to the state, Hispanics disproportionately lack either a driver’s license or a personal identification card,” Thomas Perez, head of the Justice Department’s civil rights division, wrote in the letter to Keith Ingram, the director of elections for the Texas Secretary of State.

And they can’t possible get one. That’s too much of burden. 🙂

And here’s the liberals making the VERY SAME argument they ALWAYS make:

The photo ID law would disproportionately affect poor and minority voters, who are least likely to have any of the required forms of identification or the documentation needed to obtain one, said Luis Figueroa, a San Antonio, Texas-based legislative staff attorney with the Mexican American Legal Defense and Educational Fund . It also would hurt students because college or university IDs would not be accepted, Figueroa said.

Ever heard of a fake id?! 🙂

Liberals, can’t live with them, can’t shoot them either… 🙂

 

But at least it’s not OIL!

Political Cartoons by Gary Varvel

“It’s the easiest thing in the world (to) make phony election-year promises about lower gas prices,” Obama said. “What’s harder is to make a serious, sustained commitment to tackle a problem that may not be solved in one year or one term or even one decade.”

It’s not my fault!! Don’t blame Me!

And Oil will never solve the problem so let’s concentrate on pie-in-sky, economically non-viable solutions instead! And when you call me on it I will use bogus statistics that “show” I’m not doing just that!!!

Unless you’re a Democrat and the President is a Republican, especially one named Bush, then it’s entirely their Fault!

So Obama trotted out yet another ANYTHING BUT OIL liberal “feel good” Enviro-whacko fantasy: The trio of proposals announced in Miami included a $30 million competition in natural gas technologies and a $14 million program to development algae-based fuel.(which is a minimum of 10 years away from even competing- see below- let alone replacing)

None of this crap is economically viable, but at least it’s not OIL! 🙂

“We’re making new investments in the development of gasoline, diesel ($4 a gallon here in Phoenix) , and jet fuel that’s actually made from a plant-like substance, algae — you’ve got a bunch of algae out here,” Obama said at the University of Miami today. “If we can figure out how to make energy out of that, we’ll be doing alright.

IF!!!!! Yeah and IF I could figure out how to win the Lottery and look like Hugh Jackman and retire as a multi-millionaire the world would be a better place! 🙂

So I think I’ll devote the rest of my life to making that happen and ignore reality. Fantasy is so much better and makes me “feel” so much better. 🙂

Believe it or not, we could replace up to 17 percent of the oil we import for transportation with this fuel that we can grow right here in America.”

IF it Works! IF it’s viable! IF it’s compatible! In 20-30 years and after trillions of dollars of Solyndras.

But at least it’s not OIL!

Obama did not say when he expected algae-based fuel to reach that level, but the federal government has a dodgy track record with respect to developing alternative vehicle fuels. Biodiesel, for example, accounted for less than 1 percent of the diesel fuel market as of 2008, according to the Energy Information Administration. And of course there’s ethanol — after four decades, tens of billions of dollars in subsidies, and draconian mandates that force it on unwilling consumers, ethanol was five percent of vehicle consumption (by volume) as of 2008. Although algae-to-gas is a very different idea, it is still in its early stages.

I did blogs about famines in other parts of the world because so much corn was being used up for the then-latest NOT OIL Liberal fantasy.

But it’s not Obama’s fault! Remember that. 🙂

Oil is what makes the world run, but Liberal hate it, so they’ll do everything they can to avoid it without appearing to do so because that’s bad politics.

Just remember, when you fill up your car and it cost $60,70,$80, $90, $100 to do it it’s The Republicans fault!! 🙂

Oil industry leaders reject Obama’s claim to have given significant support to oil production. “These have been the most difficult three years from a policy standpoint that I’ve ever seen in my career,” Bruce Vincent, president of Swift Energy, an oil and gas company in Houston, said yesterday. “They’ve done nothing but restrict access and delay permitting.”

The Ministry of Truth has a Lot of work to do! 🙂

The Washington Examiner’s Michael Barone argues that he hasn’t been consistent even on that front. “We’ve prohibited a pipeline, the safest way to transport oil, from Canada, but we’re aiding Mexico in offshore drilling, which is riskier, and by a firm that lacks the experience of the U.S. firms we have been trying to prevent drilling in the same body of water,” Barone wrote yesterday. “Does this make any sense at all?”

And we are subsidizing Brazil. It just so happens that Petrogas in Brazil is partially owned by Democrat Uber-contributor George Soros.

Nothing to see here. Except Cronyism. 🙂

Speaking of Crony Capitalism: Solyndra

Nearly two dozen employees of the solar panel maker that got a $535 million federal loan guarantee shortly before bankruptcy got $368,500 in bonuses Wednesday from a federal bankruptcy judge — in spite of the company failing to disclose it gave several of the raises of as much as 70% months earlier, after it went bankrupt.

The Washington Times noted a lawyer representing fired Solyndra workers has argued the company’s liquidation benefits few beyond Argonaut Ventures, part of a foundation run by Obama fundraiser George Kaiser.

Other Solyndras are coming to light, the latest being Sapphire Energy. Its pond-scum-based biofuel still costs over $26 a gallon, but that doesn’t matter when your executives give almost solely to Democrats.

The Washington Free Beacon reports that after $104.5 million in stimulus and other Energy and Agriculture Department funds for a New Mexico facility, it can boast just 36 new jobs. UC Berkeley’s Energy Biosciences Institute says it’ll take a decade before we know if algae-based fuel can compete with gas.

The Washington Post recently found “$3.9 billion in federal grants and financing flowed to 21 companies backed by firms with connections to five Obama administration staffers and advisers.”

Revelations of Obama’s green waste and corruption may have only just begun. (IBD)

The Great Obama Whoppers

IBD: The White House billed President Obama’s energy policy speech as a response to mounting criticism of record high gas prices. What he delivered was a grab bag of excuses and outright falsehoods.

Obama’s main message to struggling motorists was: It’s not my fault, so stop whining. The speech only got worse from there, recycling excuses and myths that Obama’s peddled for years. But there were some standout whoppers that deserve debunking. The five biggest:

“We’re focused on production.”

Fact: While production is up under Obama, this has nothing to do with his policies, but is the result of permits and private industry efforts that began long before Obama occupied the White House.

Obama has chosen almost always to limit production. He canceled leases on federal lands in Utah, suspended them in Montana, delayed them in Colorado and Utah, and canceled lease sales off the Virginia coast.

His administration also has been slow-walking permits in the Gulf of Mexico, approving far fewer while stretching out review times, according to the Greater New Orleans Gulf Permit Index. The Energy Dept. says Gulf oil output will be down 17% by the end of 2013, compared with the start of 2011. Swift Energy President Bruce Vincent is right to say Obama has “done nothing but restrict access and delay permitting.”

“The U.S. consumes more than a fifth of the world’s oil. But we only have 2% of the world’s oil reserves.”

Fact: Obama constantly refers to this statistic to buttress his claim that “we can’t drill our way to lower gas prices.” The argument goes that since the U.S. supply is limited, it won’t ever make a difference to world prices.

It’s bogus. New exploration and drilling technologies have uncovered vast amounts of recoverable oil.

In fact, the U.S. has a mind-boggling 1.4 trillion barrels of oil, enough to “fuel the present needs in the U.S. for around 250 years,” according to the Institute for Energy Research. The problem is the government has put most of this supply off limits.

“Because of the investments we’ve made, the use of clean, renewable energy in this country has nearly doubled.”

Fact: Production of renewable energy — biomass, wind, solar and the like — climbed just 12% between 2008 and 2011, according to the federal Energy Information Administration.

“We need to double-down on a clean energy industry that’s never been more promising.”

Fact: Renewable energy simply won’t play an important role in the country’s energy picture anytime soon, accounting for just 13% of U.S. energy production by 2035, according to the EIA.

“There are no short-term silver bullets when it comes to gas prices.”

Fact: Obama could drive down oil prices right now simply by announcing a more aggressive effort to boost domestic supplies. When President Bush lifted a moratorium in 2008, oil prices immediately fell $9 a barrel.

Obama said in his speech that Americans aren’t stupid. He’s right about that, which is why most are giving his energy policy a thumbs down.

So The Ministry of Truth has EVEN more work to do.

So don’t worry, Be Happy. Your grandkids will be free of OIL!

Possibly…Maybe…Probably Not…But it will make you feel good thinking it will happen.

Enjoy!

Michael Ramirez Cartoon

Political Cartoons by Lisa Benson

Political Cartoons by Chuck Asay

Follow The Agenda

Remember, long ago in the very distant past of 2008 when $100+ per gallon gas was the fault of rich Oil men like President Bush and Evil CEO’s??

It was all the Republicans fault. As a commenter on a Huffington Post article about the “Bush Legacy” of  High Oil Prices put it “George Bush is from Texas, and has friends (campaign contributers) in the oil industry. Dick Cheney is from Wyoming, where he lobbied for the oil and coal business. Cheney was CEO of Halliburto­n which sells equipment to the oil business. While they’ve been in power the price of crude oil has quadrupled­. Follow the money.” which is very typical Liberal socialist diatribe.

Well, it’s BACK! And not an evil Oil President in sight. But I’m sure it’s still his fault anyhow.

Today, Reuters: “OPEC will only have an extraordinary meeting if oil prices exceed $100 and stay there. We don’t want the market to panic,” the delegate told Reuters.

So Fast forward to today in the Huffington Post reader comments:

“Of course Big Oil, energy, and the insurance industry will continue to raise prices. The plan is to make sure that middle class American’s have very little disposable income. What people don’t pay in taxes, they must pay over to corporate monopolies in the form of inflated prices. Reducing taxes kills the middle class because it destroys the ability of a “United People” to combat the tyranny of corporate fascism.”

Nothings changed.

Only, everything has, but the Liberals are still too obsessed with their Class Warfare Agenda and “green” to see it.

Political Cartoon

The prospect of oil breaking $100 a barrel, last touched in October 2008 after Lehman Brothers collapsed, has raised alarm bells about the impact of fuel costs on the economic recovery.

Obama almost secretly “allowed” some oil companies to start drilling again 6 months AFTER the Oil spill was plugged. Even though a Federal Judge said the Moratorium was illegal they went and did it again anyhow.

The Media just tried to ignore it.

After all, they have to prop up GM’s sales of the fake electric car, The Chevy Volt. I had a few choice words to say on it : https://indyfromaz.wordpress.com/2010/10/20/revolt-ting/

Especially in light of the news about the GM (Government Motors) bail out.

You know the one where the spin is that GM paid it all back and bail outs do work…

The Congressional Oversight Panel reported Thursday that by selling 45% of the stock it had in GM, Washington has “‘locked in’ a loss of billions of dollars and thus greatly reduced the likelihood that taxpayers will ever be repaid in full.”

Bailout defenders had thought that GM’s IPO would show critics that the government could make money on the bailout. But when “Treasury received a price of $33 per share,” it sold “well below the $44.59 needed to be on track to recover fully taxpayers money.”

That seems clear enough. But those justifying the bailout will ignore taxpayers’ losses and focus instead on the panel’s statement that the aided companies are “on the path to financial stability.”

Set your media on SPIN!

But then again, that’s what Liberals want.

You out of that gus-guzzling, Oil-loving, Class Warfare, infernal-combustion, global warming evil machine of death!

They want you to drive an electric car (even a fake one) or nothing.

The fact that petroleum is used in thousands of products besides gasoline, including the trucks and trains that are hauling freight all over the country is completely outside of their Agenda so it’s immaterial.

That orange had to be shipped into your grocery store from somewhere.

But The Agenda is The Agenda.

We all have to have solar panels, wind farms, electric cars and organic food.

The costs of this are immaterial. It “feels good”.

It’s 60’s hippie marijuana-toking stupidity, but  it “feels good”.

And liberals blindness is only 1/2 the problem.

The other one is China and India.

You see, one of the main reasons for the Oil Prices is them.

It’s called Demand. As in Supply and Demand.

That principle of economics Liberals only understand when it suits their Agenda and ignore otherwise.

They have a huge demand. They can pay for it (largely with our debt) so why not sell it to them instead.

With fierce global competiton and  state-run monopolies in Venezuela and China squeezing out Western energy giants, the bottom line is that cheap oil – and subsequently cheap gasoline – just doesn’t work out on the balance sheets of big oil.

At the same time, U.S. commercial oil supplies fell 1.2% to 335.3 million barrels last week. (Investor Place)

They have other customers and bigger costs. And those “western Energy Giants” at least in this country are hobbled by an Administration that is vehemently hostile to them.

So even if we produced more it would help like it did in “the old days”.

But ignoring the problem and sticking your head in the “green” sand also isn’t going to help.

“Green” tech is not economical as of yet, so relying on it, praying for it, waving 60’s peace and love over it isn’t the answer right now.

But that’s the Agenda. And The Agenda is The Agenda.

So expensive gas suits The Agenda.

And that is George W Bush and Big Oil’s Fault! 🙂

Especially as austerity is slapping us in the face.

For Jan 1, 2011 10,000 Baby Boomers EVERY DAY will be retiring for the next 20 years!!

And they want their government money and they want it NOW! (and ObamaCare).

The more we can produce for our own the better we will be for our own sake.

And being responsible for our own is important.

But The Agenda is more important!

In 2008 High Oil Prices worked for them because it was good for demonizing Bush and Big Oil, now it works for their “green” Agenda.

Either way, we all get tarred!

Political Cartoon