Category: Politics

“Transferism” as a term for our prevailing political philosophy?

by philg

It seldom strikes me as correct when an American is referred to as being “right wing” or “leftist”. These 230-year-old terms are vague to the point of being useless. Wikipedia:

Leftist economic beliefs range from Keynesian economics and the welfare state through industrial democracy and the social market to nationalization of the economy and central planning, to the anarcho-syndicalist advocacy of a council- and assembly-based self-managed anarchist communism.

Similarly, people who are characterized as “liberal” or “conservative” seldom have a coherent political philosophy. “Socialism” is also a vague term. In the Soviet Union it meant that everyone had to work, even mothers of young children, for example. In the U.S., the same word has become associated with the idea that nobody has to work, especially not mothers (e.g., “single moms” or “welfare moms”).

“Transferism, Not Socialism, Is the Drug Americans Are Hooked On” (from the FEE folks who tilt at windmills in the belief that there are a significant number of Americans who want a market economy) delves into this question of terminology.

Socialism is state control of the means of production. The intent is that these means are to be used for the public good. By contrast, capitalism is simply private ownership of the means of production. The intent is that these means are to be used to advance the interests of those who own them, which will in turn create conditions of general prosperity that can be enjoyed by all.

It appears that what Americans really have in mind when they think about socialism is not an economic system but particular economic outcomes. And their thoughts seem to focus most often on the question of what people should have. The answer they arrive at most often? More than people typically get in a system based on the pursuit of profit. Capitalism, they believe, is immoral because it is a system in which some do without while others have more than they could hope to use in multiple lifetimes.

Transferism Is a More Accurate Term

These four in ten Americans, and the politicians who speak for them most vocally, are not advocating socialism at all; they are advocating what we should really call “transferism.” Transferism is a system in which one group of people forces a second group to pay for things that the people believe they, or some third group, should have. Transferism isn’t about controlling the means of production. It is about the forced redistribution of what’s produced.

Federal transfers to persons have risen from 11 percent of federal spending in 1953 to 53 percent today. As with persons, the federal government also sends transfers to state and local governments. Federal transfers to persons and state and local governments have risen from 17 percent of federal spending in 1953 to 69 percent today. As of today, almost 70 percent of what the federal government does involves simply taking money from one group of people and giving it to another. Less than one-third of the money Washington spends is spent in the name of actual governance.

Readers: What do you think? Is transferism a more precise term than those that are thrown around in an attempt to characterize Americans’ political wishes?

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If immigrants determine the outcome of U.S. elections, why pay for a military?

by philg

Front page of nytimes.com on November 10:

“An influx of immigrants has flipped a state….”

From the article:

Not long ago, this rolling green stretch of Northern Virginia was farmland. Most people who could vote had grown up here. And when they did, they usually chose Republicans.

The fields of Loudoun County are disappearing. In their place is row upon row of cookie-cutter townhouses, clipped lawns and cul-de-sacs — a suburban landscape for as far as the eye can see. Unlike three decades ago, the residents are often from other places, like India and Korea. And when they vote, it is often for Democrats.

In 1990, the census tracts that make up Mr. Katkuri’s Senate district were home to about 35,000 people — 91 percent of them white. Today, its population of 225,000 is just 64 percent white.

“If my parents came back today, they wouldn’t recognize the place. The changes came like a tidal wave.”

In the 13th Senate district, where Mr. Katkuri lives, one in five residents are immigrants.

Around the advent of the modern immigration system, in 1965, foreign-born people made up only about five percent of the American population. Now they are nearly 14 percent, almost as high as the last peak in the early 20th century. The concentrations used to be in larger gateway cities, but immigrants have spread out considerably since then.

The main purpose of funding a military is to prevent people from other countries from exercising political control, right? If the NYT is correct and people from other countries (“immigrants”) are exercising political control in the U.S. already, what is the point of working all of those extra hours each year to fund our $700 billion military?

Related:

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Biden admits that Donald Trump has been tremendously successful in business

by philg

Thanks to my comments scolding Facebook posters on their failure to fully embrace socialism, LBTQIA+ rainbow flagism, etc., I am on Joe Biden’s email list. From November 16, 2019:

Subject: I never got a million dollar loan from my dad

My father taught me that a job is about more than a paycheck. It’s about your dignity. It’s about being able to look your child in the eye and say everything is going to be ok.

Unlike Donald Trump, my father never loaned me millions. Everything I’ve gotten in my life I’ve worked for — and that’s the reality for most Americans.

For Donald Trump, his life was handed to him on a silver platter and he has never had the slightest inclination to pay it forward.

I’m going to lay out the case on Wednesday night at the debate why I’m the best candidate to take on and defeat Donald Trump next November. But I still need to raise another $500,000 from grassroots supporters before I take the stage in order to stay on track with our fundraising. Can you chip in $5 today to help me out today?

Since Donald Trump is now a multi-billionaire with a personal Boeing 757 in executive configuration, saying that he started with only $1 million (subject) or “millions” (body) is tantamount to admitting that the hated dictator (and almost lifelong Democrat!) has been tremendously successful in business, as measured by ROI. Does Biden not realize this or does he assume that readers of his email are not smart enough to recognize that turning $1 million into multiple billions is an unusual outcome?

[Also note the outdated description of a job from this outdated politician: “It’s about being able to look your child in the eye and say everything is going to be ok.” The welfare parent with the lifetime right to occupy public housing can do that. The employee-at-will holder of a non-government job can’t promise a child anything about the family’s future.]

What did I miss while I was in China? Are the geriatrics still leading among the Democrats? Or is Mayor Pete emerging as I predicted?

(Another politician with whom my Facebook postings apparently align is Tom Steyer. As with other Californians, I can’t figure out why he bothers with national politics. If there are services, such as housing for people currently living in tents, that he thinks government should provide, why doesn’t he organize it at the state or local level where Republicans can’t obstruct progress? Has anyone just straight up asked him why he doesn’t bring his religion to 40 million fellow Californians before trying to proselytize the entire nation?)

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Lesson from India: Buy gold before Elizabeth Warren is elected

by philg

I’m listening to the Billionaire Raj on Audible. The author says that intensive government regulation (the Licence Raj) and high income tax rates motivated Indians to operate a “black money” economy in which transactions were carried out with cash, gold and savings were stashed in real estate and gold, and the slow-moving wheels of government bureaucracy were lubricated with confidential payments in gold. In fact, it is possible that the massive size of the Indian economy and this massive unexpected need for gold is what has been keeping the price of gold so high over the last 20-30 years.

What if Elizabeth Warren were to be elected in 2020? She proposes more intensive government regulation and dramatically higher tax rates. Might this lead to increased demand from Americans for gold, as the same policies did in India?

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Bostonians protest Melania Trump

by philg

“Boston Medical Center employees to protest Melania Trump’s visit on Wednesday”:

Some 250 people who work at Boston Medical Center are protesting a scheduled visit Wednesday by first lady Melania Trump to a hospital program that helps babies who were exposed to drugs in the womb, according to opponents of Trump’s appearance.

A local reporter asked on Facebook for “thoughts” on this visit. Here are some sample responses regarding this high-achieving immigrant woman from the locals who describe themselves as “feminists”:

Could be part of a series on other parasites, bedbugs,vampire bats, ticks

She can stay away! We dont want her hypocritical interest in children here. Please! Is she only going to visit the rooms of white kids? What if there is an immigrant child staying there? Will she kick them out of the hospital? The visit is a joke!

Differences between escort services in New York and Boston.

[One difference is that the escort who gets pregnant in New York harvests a maximum of $100,000/year (tax-free) for 21 years while in Boston the child support profits are potentially unlimited and the payments last for 23 years. See Real World Divorce and “Child Support Litigation without a Marriage”.]

Fake breasts, fake personality, fake husband

My comments might not be suitable for the Globe…they won’t be too kind. Worst FLOTUS of 45 of them…#BeBest Zero sense of irony – married to the world’s biggest cyber bully and she picked that as her cause? While he puts children in cages and separates mothers from their babies? She had a chance to use her global platform to do good. #epicfail

Every single comment is a no to Melania’s visit! I’m so glad that we live in a smart state!

Now they are moving from NYC to FLA, because we haven’t treated him nicely…Trust me as a life long New Yorker who knew all about DJT when he was just another sleazy socialite, we do not want him here! Floridians you have our deepest sympathies, but please keep him…puhlease!

How much do we need to raise to cover her pre-nup? Freedom for us and the civilized world if we ante up and she spills the beans. My checkbook and pen are at the ready.

No win situation. She’s coming to see an amazing program but also one that confirms a narrow view of brown and black people held by the White House. Yet Bmc depends on federal dollars so protesting- which seems obvious when an anti immigrant admin visits a remarkable institution that welcomes all— puts Bmc funding in jeopardy. It’s a perfect set up for a vindictive small-minded president to confirm his preconceptions and cut funds. Another chance for we liberals to play into trumps hand. For an idiot he sure knows how to agitate us and get the result he wants.

[This last one is my favorite, an acknowledgment that “Big Medicine” depends on “Big Government”.]

It occurred to me that the haters are part of a community that produced enough babies addicted to opiates that a special hospital program had to be created. On the other hand, Melania Trump has, to the best of my knowledge, never produced a single opiate-addicted baby.

Also, given that many of the above sentiments are from women, where is the solidarity among the sisterhood?

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Bill Gates: Income taxes great; wealth taxes bad

by philg

“Bill Gates criticises Elizabeth Warren’s plan for tax on super-rich” (BBC):

Under the original plan, households with a net worth between $50m (£39m) and $1bn (£780m) will be charged with a 2% “wealth tax” every year. This would rise to 3% for any households with a net worth of over $1bn.

But last week, Ms Warren suggested doubling the latter rate – from 3% to 6%. She said the money raised from this new tax would be used to fund her healthcare plan, which is expected to cost the federal government $20.5tn over 10 years.

Mr Gates hit back at the idea during a talk at the New York Times DealBook conference in New York on Wednesday.

“I’m all for super-progressive tax systems,” he said. “I’ve paid over $10 billion in taxes. I’ve paid more than anyone in taxes. If I had to pay $20 billion, it’s fine.

“But when you say I should pay $100 billion, then I’m starting to do a little math about what I have left over,” he added. “You really want the incentive system to be there without threatening that.”

(I don’t understand his statement that he has paid $10 billion in taxes. If he mostly let his Microsoft stock sit or donated it to his foundation, why did he have to pay capital gains tax? Certainly he would not have had a substantial amount of ordinary income that would attract the high ordinary income tax rates that he has advocated. Maybe the $10 billion is capital gains tax on venture capital investments that he made on which he was forced to exit, e.g., due to an acquisition? Plus some from selling Microsoft stock to diversify? Or he is referring to corporate taxes paid by Microsoft (see below) that he paid indirectly?)

He’s “all for super-progressive tax systems,” but with one exception!

Related:

  • Microsoft’s pre-Trump corporate tax system: “By conducting sales from places with small populations and low tax rates, and routing some profit through virtually tax-free jurisdictions like Bermuda, Microsoft has cut billions of dollars from its tax bill over the last decade.”
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Fast-food economics in Massachusetts: Higher minimum wage leads to a shorter work week, not fewer people on welfare

by philg

One reason for a $15/hour minimum wage cited by advocates is that current minimum wage workers are generally on welfare (public housing and Medicaid if not also food stamps, etc.) and therefore, the theory goes, the employer is being subsidized by taxpayers.

(How a $15/hour job would lift a household above the welfare thresholds is unclear; in our corner of Massachusetts, a family of four is entitled to housing and/or health insurance subsidies up to $130,000/year. At $15/hour, that’s 167 hours/week, 52 weeks/year.)

I recently talked to the owner of 12 fast-food outlets here in Massachusetts. He is a Democrat and enthusiastically supports the party’s proposals for increasing the number of migrants to the U.S. “Immigrants work harder than Americans,” he said, “who have been on welfare for multiple generations and don’t have a culture of work.” He also appreciates immigrants as customers.

There is one part of the Democrat platform that he does not agree with: the $15/hour minimum wage. “Every time wages go up,” he said, “my employees ask to work fewer hours so that they don’t lose MassHealth [Medicaid].” On his side, he does not want anyone working more than 30 hours per week, the threshold that would trigger a requirement for him to provide health insurance under Obamacare. Out of 160 workers total, he provides health insurance to only 10. “My premiums are sky-high,” he noted, “because we have so few people on the policy.”

(This may show the irrelevance of Econ 101 principles in a half-planned economy like the U.S. Econ 101 says that the higher wage would induce workers to supply more labor hours, not fewer. But Econ 101 never met MassHealth and other means-tested programs!)

Related:

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49 percent of Washington State voters see themselves as victims

by philg

Yesterday’s post regarding Kshama Sawant, the immigrant running for reelection on a platform of “the rent is too damn high,” motivated me to check the election results. Ms. Sawant was the only incumbent to have lost. More interestingly, 48.7 percent of Washington State voters say “yes” to reinstating affirmative action:

I-1000, the measure passed by lawmakers, aims to increase diversity in public contracting, employment and education, while barring the use of quotas or preferential treatment.

Affirmative-action supporters say such measures are necessary to address longstanding and broad discrimination against women and people of color. One example they cite is data showing a drop in contracts with the state for certified women- and minority-owned businesses.

But throughout the campaign, opponents of affirmative action — led by a group of Chinese immigrants — said the policy gives the government the power to discriminate.

If we assume that people vote their self-interest, then we can conclude from the election result that nearly half of the voters in Washington State expected to benefit from official victim status.

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U.S. southern border versus Syrian northern border

by philg

Facebook is alive with outrage regarding Donald Trump’s scaling back of our military involvement what will soon be the 9th year of the Syrian Civil War.

The same people who demanded the abolition of ICE and the pulling back of armed U.S. forces patrolling the U.S. southern border are demanding that armed U.S. forces patrol the Syrian northern border. The people who advocate for a wave of migration from Central America into the U.S. are opposed to a wave of re-migration of Syrians currently in Turkey back across the northern border into their original home (map from the BBC, which says “Turkey launched the offensive in northern Syria a week ago to push back from its border members of a Syrian Kurdish militia called the People’s Protection Units (YPG) and create a ‘safe zone’ along the Syrian side of the border, where up to two million Syrian refugees can be resettled.”

Readers: Is Trump wrong? Should we spend the next 10-20 years patrolling the Syrian border and trying to keep our NATO ally Turkey (population 80 million) from doing what it deems prudent in its immediate neighborhood?

[If Elizabeth Warren prevails in 2020, will she solve both of these problems by relocating U.S. Border Patrol forces over to northern Syria?]

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Academics and NYT stirring up envy

by philg

“How to Tax Our Way Back to Justice: It is absurd that the working class is now paying higher tax rates than the richest people in America.” (NYT) is kind of fascinating for what it says about our media and taxpayer-funded universities.

Emmanuel Saez and Gabriel Zucman, economists at UC Berkeley, figured out that the “bottom 50%” of Americans earn $18,500/year on average and pay a tax rate of 25 percent.

Here’s my comment on the piece:

I wonder if these guys ever leave their offices on campus.

If they were to walk down to one of the less genteel neighborhoods in their fair city of Berkeley they would discover folks who are living in taxpayer-funded housing, signed up for taxpayer-funded health insurance (Medicaid), receiving taxpayer-funded food stamps, and using a taxpayer-funded smartphone.

Unless you’re going to turn all of these noncash welfare programs into some kind of cash income equivalent, there is no meaningful way to calculate the tax rate paid for an American on welfare. Given that 71 million of us are on Medicaid, for example, the numbers presented in this article cannot possibly be correct. The economists have the “bottom 50%” with an average annual income of $18,500. The income limit for welfare in the writers’ native Bay Area is at least $117,400/year (see https://www.mercurynews.com/2018/06/25/the-eye-popping-definition-of-what-is-low-income-in-the-bay-area-increases-again/ ).

Maybe they found some people with a cash income of $18,500, but that isn’t their spending power. If it were, these folks could not afford to live in the U.S. at all (since, if they have a kid or two, health insurance would consume 100% of their income, leaving nothing for food or shelter).

The truly amazing thing here is that middle class Californians are being taxed to fund these two professors!

The article has a lot of information about how the rich are getting richer.

Since it is obviously absurd to talk about the tax rate paid by people who are mostly living on welfare, what could the purpose of the article be other than to sow discord and rage? (the authors hint that they have been advising Elizabeth Warren and presumably would be on track for central planning jobs if she were to be elected)

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