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12/23/2010
Parins: The Badger State Dream Team?
A gross misunderstanding of capitalism is afoot in this state, this nation, this globe. There is an inconvenient truth -- a global fiscal climate change. At least two generations are on the loose which totally fail to comprehend the risk and reward of capitalism, the wants and needs of this global economy.
Sen. Luther Olsen put his finger on it the other day when he said folks are hopping mad over government taxes and spending and shouting, “Cut, cut, cut!" But when a specific program is targeted, they say, "We didn't mean you should cut that." Wait and see how Luther hollers when his precious Corn/Ethanol subsidy comes up for debate.
Thousand of students across the United Kingdom are protesting over a national austerity budget that cuts funding and increases tuition and fees. In essence, they are demanding money that does not exist to pay for what they believe is their right to a free college education.
Many UW campuses in the past 6 years have seen small student protests over fee and tuition hikes forwarded by the Board of Regents in response to state budget cuts. This reality has magnified over the tenure of Diamond Jim Doyle, as he robbed segregated funds, with disgraceful Republican complicity, to minimize the deficit’s impact on union jobs and students.
Students and unions are in for a real shocker as the Walker administration takes the reins. Walker has vowed not to simply stand in the blast crater and wait for erosion to bring the ground down below his chin. And he has vowed not to dig for China with sham investment plans like high-speed rail.
Walker is going to cut state spending and create a tax climate that encourages private sector job growth.
How do unions create jobs? They demonstrated their plan outside the Talgo International train factory in Milwaukee earlier this money - “free Willie Wonka, and more free chocolate!”
Union members gathered with signs, roused their ire with audaciously hopeful rhetoric, and chanted, “What do we want? Jobs! When do we want them? Now.” I know this is the Badger state, but do you create jobs by badgering employers to add liabilities to their payrolls?
Did SC Johnson create more than 12,000 jobs in 72 countries by demanding them into existence? Did John Menard create the nation’s third largest home improvement empire by standing outside offices badgering government to build him a store?
NO! They wracked their brains, wrung their hands over business and finance plans, vetted products and manufacturers, sweated over supply networks, pitched proposals to banks and investors and prayed for loans. They stretched their necks over the chopping block to realize their dreams.
But subsequent generations have forgotten the sweat, toil and flirtation with failure that necessarily accompanies capital investment. Most folks under 50 don’t know what Bill Gates went through to become Bill Gates. They think Warren Buffet is merely an incarnation of King Midas.
And, unfortunately, through programs like BadgerCare and TARP, many have come to believe government is an ATM from the Bottomless Bank of Abundance. Weaning a larger than imagined cross-section of self-interests from across political and economic strata will be a huge undertaking, but done fairly, shared by all, big and small, union and non-union, it may be the beginnings for a reunification of the citizenry. Dreamer, eh?
Gov. Walker will reset reality on capitalism, restoring the badger as a symbol of industry and feisty self-reliance. He will re-establish Wisconsin as a place and a people with the determination to help restore normality to the global fiscal climate. Our very livelihoods rely on this dream becoming more a reality. This is no longer a dream; it is a necessity. The question remains, will our newly elected conservative dream team come to play?
Richard Parins is a resident of De Pere and the President of the Brown County Taxpayers Association.
COMMENTS
This Piece should be printed in the Wall Street Journal as a shot across the bow of all those who believe monetary entitlements are tax payer obligations.
This clear message defines the gap between current recipients of State aid, and reality.
I feel privileged to know Richard.
Well Done !
Rich Carlstedt (Thu Dec 23 08:12:38 2010)
Just where did Parrins get his expertise in macroeconomics? Perhaps he IS qualified to speak about it but I would like more than life and business experience. Macroeconomics is not something intuative. One can drive a car without undestanding how to build it.
He make assumptions about what others think and then mocks those assumptions.
Dean Weichmann (Thu Dec 23 08:42:14 2010)
Well Spoken Mr Parrins!
It actually speaks to the problem as opposed to Mr. Weichmann's comments whom are apparently steeped in Liberal Thought.
Speaking of Liberal Thought;
A lot of people who voted for liberals in 2006 and 2008 switched sides in 2010. And why did this happen? Because, in reality, there just aren't that many people who believe what liberals believe.
A lot of people say they're liberal because they see liberals as they see themselves - open, tolerant and compassionate. But show them what liberalism truly stands for in 2010 America - socialized medicine, the politics of victimization, the consummate evil of saying "Merry Christmas" instead of "Happy Holidays" -and many walk away.
Hello Mr. Parrins...
GoodBye Mr. Weichmanns.
James Murphy (Thu Dec 23 10:50:45 2010)
Bill Gates and Warren Buffett are Democrats.
Marcus (Thu Dec 23 11:26:30 2010)
>>>It actually speaks to the problem as opposed to Mr. Weichmann's comments whom are apparently steeped in Liberal Thought.<<<
First, I want to thank you for labeling me as a Liberal, I do aspire to be open, tolerant and compassionate.
>>>show them what liberalism truly stands for in 2010 America - socialized medicine, the politics of victimization, the consummate evil of saying "Merry Christmas" instead of "Happy Holidays" -and many walk away.<<<
Too bad that you continue Parrins way of assuming what Liberal Thought is and then condemning liberals for it. Perhaps you should aspire to have an open mind and tolerance for thoughts contrary to your own. You might learn something.
Dean Weichmann (Thu Dec 23 14:03:24 2010)
Dean
And one can drive a nail without knowing the intricacies of how a hammer or nail gun is constructed.
And then you have Paul Krugman, credentialed to the hilt, promoting the most vile of snake oils: when you are broke, spend more, when in a deep ditch, dig it deeper to get out. Not enough money? PRINT SOME, NO PRINT LOTS AND LOTS AND LOTS!!!
And the sad fact is there are lots of useful idiots who buy his balderdash. All to many are in government. And Krugman fails to recognize that we TRIED Keynesianism, and it has failed miserably. We doubled the amount government spends the last 10 years, the FED printed twice as many FRNs as were previously in circulation in the period of a month or 2, we "stimulated" the economy both with Trillions stolen from taxpayers, and the FED printed into existence perhaps $10-12 Trillion, and Krugman says it is not enough.
But he has credentials. One wonders if he is stupid, or if he desires the destruction of our economy, and inevitably, our liberty. In the long run, it does not make a difference what his motivation, we are sunk if we continue to follow his advice.
Ken Van Doren (Thu Dec 23 14:23:50 2010)
Over the past 17 plus years I have had the privilege to assist homeowners buy a home or reconstruct their existing debt to, NO, not buy more but take advantage of better terms for their mortgage. Does this qualify me in macroeconomics, probably not from the credentialed world of the higher learning institutions. But I will say this, I have learned more from the day to day, more mundane fiscal reality of the lives of people whose hands I've shaken and whose kids I've met, than all Mr. Krugman has proffered in print and the telly.
I'll hang my hat with Hayek, Friedman, even old Billy Buckley, and be proud of the company I keep. While I have read and listened to Krugman, to the naysayers, have you read the small but important economic tome, "The Road to Serfdom?" Well impress your conservative friends and read this book; there will be a quiz next year. And an answer will appear, do we continue to follow the 'King of Serfs', and 'I never saw a tax I didn't like,' Jim Doyle or turn to within ourselves, the best this state has to offer and stand beside the coming hard choices to be made by Scott Walker.
Richard Parins (Thu Dec 23 15:00:04 2010)
>>>But I will say this, I have learned more from the day to day, more mundane fiscal reality of the lives of people whose hands I've shaken and whose kids I've met, than all Mr. Krugman has proffered in print and the telly.<<<
Richard,
I am not a macroeconomist, nor are you.
It is foolish for you to think that you have learned macroeconomics from life experience. I would venture to suggest that Krugman could not do your job as well as you. Why do you think you can do his?
I will attempt to read The Road to Serfdom. Will you read his blog? You test me and I will test you. Jo can forward my email address.
Dean Weichmann (Thu Dec 23 17:03:34 2010)
>>>And then you have Paul Krugman, credentialed to the hilt, promoting the most vile of snake oils<<<
Ken, get a clue. Krugman knows far more than you.
>>> Krugman fails to recognize that we TRIED Keynesianism, and it has failed miserably. <<<
Really? When? Krugman has consistently pointed out that the stimulus was to small and was offset by state government cuts.
I had to look up FRNs. They are not issued by the Fed. I will assume you mean quantitative easing, QE. Krugman has also pointed out that it would not be effective in a liquidity trap. It would be like pushing a chain (my analogy). Fiscal policy is all that is left. Stimulus... such as spending on something useful, infrastructure.
Dean Weichmann (Thu Dec 23 17:48:38 2010)
Looked up Road to Serfdom, saw this comment by Keynes;
>>>John Maynard Keynes said of it: "In my opinion it is a grand book...Morally and philosophically I find myself in agreement with virtually the whole of it: and not only in agreement with it, but in deeply moved agreement."[10] Having said that, Keynes did not think Hayek's philosophy was of practical use; this was explained later in the same letter, through the following comment: "What we need therefore, in my opinion, is not a change in our economic programmes, which would only lead in practice to disillusion with the results of your philosophy; but perhaps even the contrary, namely, an enlargement of them. Your greatest danger is the probable practical failure of the application of your philosophy in the United States<<<
Dean Weichmann (Thu Dec 23 18:04:23 2010)
Dean.
You say Krugman knows more than I. How do you know this? You have no idea who I am, what I have studied, and only a little knowledge of what I know.
IF Krugnman knows more than I do, there are only a few possibilities. A. He does not access the real pool of knowledge he is privy to, only preferring to stay in the shallow end of the pool. B. He is dishonest in his disemination of ideas and opinions, knowing full well that he is in fact promoting snake oil. C. His brain is such that he can not make a coherent pattern out of all that he knows. The only other alternative is that he is stupid, and that I have a hard time believing. The most likely of the above, in my opinion, is B. He is a hired gun for the statist/socialist/interventionists who want to control the world.
You talk of "useful investments," but are either unaware of or choose to ignore the fact that most political decisions are made for political, not economic purposes. Therefore, the bigger and more political a government, the more wasteful its actions are likely to be. This predictably has impoverished us.
Krugman talks incessantly about the failure of the free market, yet ignores the many ways the market is not free, ignores the many interventions which undeniably led us to the mess we are in today. The Community REinvestment Act, Fannie Mae, Freddie Mac, the Federal REserve, NONE of these are creatures of the free market. Not to mention that the REAL cost of government (COG) is likely to exceed 70% of our economy this year, and we are scheduled to in crease this figure further with the "PROGRESSIVE" implementation of OBamacare bureaucracies. This is up from 50% just 4 short years ago. At what point does this become unsustainable? Now add that government may protect or redistribute wealth, but government itself does not create any wealth. (COG, BTW, includes taxes, licenses, fees, permits PLUS costs made to private businesses in order to fulfil government mandates.)
Good Keynes quote. I like the final sentence. An accurate look at history would lay the blame for the present debacle not at the feet of advocates of freer markets, but at the feet of the Keynesian philosophy that has predominated both academia and government for more than 75 years. So again, Keynes is wrong. Thanks for pointing that out.
Ken Van Doren (Sun Dec 26 12:46:22 2010)
Oh, and yes, Treasury prints FRN's but AT the request of the Federal REserve. How is this practically any different from the FED printing them themselves.
Moreover, most money does not exist as either coins or pieces of paper. Today, more money is created by into existence by electronic blips, and "printing" is an anachronistic euphemism for how money is created. But this newly created money is just as spendable as FRN's, just as damaging to the economy as other forms of counterfeiting.
Ken Van Doren (Sun Dec 26 12:53:54 2010)
Ken, when I did not recognize what you meant by FRN I googled it and got this;
>>>What Does Floating-Rate Note - FRN Mean?
A note with a variable interest rate. The adjustments to the interest rate are usually made every six months and are tied to a certain money-market index. Also known as a "floater".<<<
I now recognise that you mean Federal Reserve Note.
You said, and I agree:
>>>Moreover, most money does not exist as either coins or pieces of paper. Today, more money is created by into existence by electronic blips, and "printing" is an anachronistic euphemism for how money is created. But this newly created money is just as spendable as FRN's,<<<
However, this part is just rediculus;
>>>just as damaging to the economy as other forms of counterfeiting.<<<
First, it ain't counterfeiting if the US Fed does it. Second it is not damaging to the economy, it is of benefit to the general welfare. Third, it is not effective anyway when the problem is lack of demand as we have now.
Fiscal policy, stimulus, is needed. As I said before that would be best accomplished creating and repairing infrastructure.
Dean Weichmann (Sun Dec 26 20:54:04 2010)
Dean said:
I now recognise that you mean Federal Reserve Note.
You said, and I agree:
>>>Moreover, most money does not exist as either coins or pieces of paper. Today, more money is created by into existence by electronic blips, and "printing" is an anachronistic euphemism for how money is created. But this newly created money is just as spendable as FRN's,<<<
I reply: GOOD THAT YOU AGREE. YOU SEEM TO BE MAKING PROGRESS..
dEAN:
However, this part is just rediculus;
>>>just as damaging to the economy as other forms of counterfeiting.<<<
First, it ain't counterfeiting if the US Fed does it.
RIGHT. JUST LIKE IT IS NOT MURDER WHEN THE GOVERNMENT DELIBERATELY KILLS INNOCENT PEOPLE.
Second it is not damaging to the economy, it is of benefit to the general welfare.
SO WHY ARE WE IN THE FIX WE ARE NOW, IN VIEW OF THE MASSIVE LEGALIZED COUNTERFEITING I CITED ABOVE?
Third, it is not effective anyway when the problem is lack of demand as we have now.
NO, THE PROBLEM IS THE MISALLOCATION OF RESOURCES IN PART BY GOVERNMENT SPENDING, IN PART BECAUSE ARTIFICIALLY CREATED AND ARTIFICIALLLY CHEAP MONEY MISLEADS INVESTORS INTO MAKING INVESTMENTS THAT CAN NOT BE MAINTAINED. "ARTIFICIAL MONEY CREATES ARTIFICIAL BUSINESSES WHICH CAN ONLY BE MAINTAINED BY FURTHER DEBASING THE CURRENCY." THINK THE NUMEROUS BUBBLES THAT WERE DRIVEN BY THE COUNTERFEITING. STOCK, HOUSING, DOTCOM. MORE MONEY NOW MAY TEMPORARILY KEEP A BUSINESS AFLOAT BUT IF THE MARKET IS NOT WILLING TO SUPPORT THAT BUSINESS OVER THE LONG HAUL, IT WILL NOT SURVIVE NO MATTER HOW MUCH $ IS CREATED.
Fiscal policy, stimulus, is needed. As I said before that would be best accomplished creating and repairing infrastructure.
TO BE SURE INFRASTRUCTURE SHOULD BE MAINTAINED, BUT TO DIVERT RESOURCES FROM PROFITABLE COMPANIES IN ORDER TO KEEP NON-PROFITABLE ONES AFLOAT DESTROYS WEALTH. TO CREATE MONEY TO INVEST IN BUSINESS SECTORS THAT ARE ALREADY WELL SERVED IS TO INCREASE THE NUMBER OF PRODUCERS AND MAKE IT HARDER TO EARN PROFITS. AGAIN, MISALLOCATION. THROW IN OTHER UNINTENDED CONSEQUENCES, AND GOVERNMENT INTERFERENCE ALMOST ALWAYS HURTS, NOT HELPS THE ECONOMY IN THE LONG RUN IF NOT THE SHORT.
What needs to happen is that the unsustainable investments should be liquidated. Now there is a great amount of uncertainty regarding not only the market, but government influence on the market. Remove that, let people keep more of what they earn, do not tip the scales one way or another with government action, and you will have all the stimulus you need. Might take a while, but the more government interferes, the more wealth government takes and squanders, the longer this downturn will last, and the more severe it will be.
And just for the record, the worst is likely ahead, not behind us.
Ken Van Doren (Mon Dec 27 09:13:17 2010)
>>>First, it ain't counterfeiting if the US Fed does it.
RIGHT. JUST LIKE IT IS NOT MURDER WHEN THE GOVERNMENT DELIBERATELY KILLS INNOCENT PEOPLE.<<<
Oh come on, get real,these are not comparable. It is a crime when someone counterfeits money for their own use. The government is OF THE PEOPLE.
>>>Second it is not damaging to the economy, it is of benefit to the general welfare.
SO WHY ARE WE IN THE FIX WE ARE NOW, IN VIEW OF THE MASSIVE LEGALIZED COUNTERFEITING I CITED ABOVE?<<<
I wish you would not shout. Changing the value of the dollar by "printing" and diluting it does have value for the common good. Think about what it does to devalue the dollar for a bit and you tell me what is objectionable about it. You are just assuming cause and effect without evidence. How do you know why we are in the fix we are now? For that matter how do you know what to do about it? Despite your apparent confidence I have no doubt that Krugman is brilliant and is not corrupted as you have suggested. Why should I think that you are sincere? (I do, but I want to make a point)
Dean Weichmann (Mon Dec 27 10:30:51 2010)
>>>First, it ain't counterfeiting if the US Fed does it.
RIGHT. JUST LIKE IT IS NOT MURDER WHEN THE GOVERNMENT DELIBERATELY KILLS INNOCENT PEOPLE.<<<
Oh come on, get real,these are not comparable. It is a crime when someone counterfeits money for their own use. The government is OF THE PEOPLE.
Ken-
So just because Mao, Lenin and even Hitler acted in the name of the people, of the public good, what they did was right. You refuse to see that there is a distinction between what is moral and what is "legal."
>>>Second it is not damaging to the economy, it is of benefit to the general welfare.
SO WHY ARE WE IN THE FIX WE ARE NOW, IN VIEW OF THE MASSIVE LEGALIZED COUNTERFEITING I CITED ABOVE?<<<
I wish you would not shout.
I SHOUT BECAUSE THERE IS NO BOLD OR ITLAICS FUNCTION HERE, SO AS TO DISTINGUISH BETWEEN YOUR COMMENTS AND MINE. But in the other post, once it became clear that I, Ken was talking, I went back to normal type.
>>> Changing the value of the dollar by "printing" and diluting it does have value for the common good.
Ken- Yes, like punishing the retired folks on fixed incomes, even to the point of taxing them out of their houses, either directly or by way of making everything more expensive. Oh, and do not forget how the fractional reserve and FED are set up to bail out the richest folks in the world, whose actions in were a significant contributing factor to the downturn. Or how working people are always seeing the value of their wages decline, while certain folks, government employees and the Wall St. insiders are protected, even rewarded for bad behaviour.
But I see your point. We would not want to punish the guilty. They would never be able to make an honest living if we eliminated the corrupt financial system we have now. My apolgies for not noticing these "public goods."
>> Think about what it does to devalue the dollar for a bit and you tell me what is objectionable about it. You are just assuming cause and effect without evidence.
Ken-
Think about how in Weimar Germany they burnt Marks ( german money) because it had more value as fuel than as currency. think about how soon, the cost of government will exceed 100% of the economy, and the only way government will have to pay the difference is by way of devaluing the dollar, making life even more dicey for those of us not favored.
>>>How do you know why we are in the fix we are now?
BECAUSE I READ, and not just the crap thrown before me by the Government Indoctrination Centers. Because Mises and Hayek explained all this, BEFORE, during and after the Great Depression.
>> For that matter how do you know what to do about it?
Again, I read, and because the system you support has failed miseraby. The FED was created, nominally to preserve the value of the dollar and to stabilize the economy. Now we are at a time when today's dollar is only worth 4 cents in terms of the 1913 dollar, and we have seen 2 Great depressions, and 15 other significant downturns. So by its own standards, the FED has been a failure.
What to do about it? Let the market work, as the "planned economy" here and elsewhere has been anything but a success. The intellectual elites suffer from what Hayek called, the Fatal Conceit. In a nutshell, this is the idea that because they are smarter than the rest of us, they know how best to plan our economy. But as Hayek points out, public planning is slow, filled with the self interest of bureaucrats and politicians, and no matter how smart, the elites have neither a monopoly on knowledge, nor have they ALL the information needed to respond to changing market forces.
>>> Despite your apparent confidence I have no doubt that Krugman is brilliant and is not corrupted as you have suggested. Why should I think that you are sincere? (I do, but I want to make a point)
Ken-
Your faith is badly misplaced. On what basis do you say Mr. K is brilliant? He misses so much of the evidence, dismisses his critics without actually addressing the most serious of their criticisms, and he has faith in government action, which quite provably was a huge factor in where we are today. Again, Community Reinvestment Act, fannie, freddie, the FED and the host of agencies that interfere with markets can hardly be called agents of the free market. Both you and your "brilliant" mentor can not or will not see this, as the arguments from your side are seriously undermined by the evidence.
How can you know I am sincere? I guess one who is insincere does not argue with logic and consistency, and take in ALL the evidence, as I and fellow Austrian thinkers do. The insincere become apologists for the powers that be, and bend the evidence or ignore it if it does not fit their model,nd they construct logical fallacies. Mr. K is BRILLIANT at that. He has no answer for Mises, Hayek, or even me, a lowly but fairly well read layman. I would GLADLY debate the devious SOB any time, any place, anywhere.
Ken Van Doren (Wed Dec 29 11:11:13 2010)
Ken said;
>>>He has no answer for Mises, Hayek, or even me, a lowly but fairly well read layman. I would GLADLY debate the devious SOB any time, any place, anywhere.<<<
I cannot arrange such a debate, but it would be easy for you to go to his site and pick something he said and point out your difference with him. Please do so and include a link.
>>>Now we are at a time when today's dollar is only worth 4 cents in terms of the 1913 dollar,<<<
Ken... so what? That corresponds to about 3.7% annual inflation. I think your ideology, that of absolute sanctity of the dollar, blinds you. Am I wrong? Then explain why.
Dean Weichmann (Sat Jan 01 13:49:38 2011)
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• Lots of ideas. No money.
• The Cigarette Tax - "Poor Policy Instrument?"
• School budget Lite?
• Frankenstein - not in the library, but in the legislature
• A librarian, a legislator, a president
• $1.25/pack - NO, NO, NO, and NO
• Kagen and Reagan in the same breath?
• Menasha: behind the 8-ball, but not biting the dust
• Any way you slice it, Wisconsin government wants (further) in on health care
• The World is Flat...what about health care?
• The PAC - too precious to fail. Day 3
• News follow-ups: Appleton West, Kagen at the White House
• Fox Cities PAC - too precious to fail - Day 2
• Fox Cities PAC - too precious to fail
• New Transit Tax coming your way
• Rep. Petri has his finger in the dike - I guess
• AASD Retirement Costs Burdensome
• Health care, health care, health care, health care
• Water rate increase was no slam dunk
• Education for all is just a bad dream
• New Year's resolutions from a parade snob
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October
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September
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| 2000 |
May
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