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Thursday, February 27, 2014

The Daily News Byte


                George Will is a well known and respected political commentator. He points out here the heart of the Liberal agenda. The purpose of these liberal policies are to help fellow liberals. With the Reinvestment Act, part of the bill was aimed to deliver more money to "unionized, dues-paying, Democratic-voting government employees." In this aspect, the investment was a success. He points to the profound irony of when John Kerry went on to speak in Indonesia about climate change while at home he owns numerous mansions and a yacht, contributing to the 'climate change' he is trying to prevent. Then, liberals speak of the conservative agenda as being only backed by the influence of the Koch brother, while ignoring the fact that they too have powerful millionaires at their back, such as Tom Steyer.

                The documented failures of ObamaCare and many. Hillary's solution, wait and just let us fix it. She says that we shouldn't just throw the baby out with the bath water. She points out to the good things that have come from the law, such as people able to stay on their parents insurance until the age of 26, but there her list ends. I don't see her logic, if in almost every aspect the law has been a failure and not achieved its expectations, why keep it? So more younger people can stay on their parents insurance, does that mean it's worth millions of people losing their plans? Is that worth millions of people who work for small business having their premiums increased? The pros and the cons don't even out, not even close. The problem is the entire bill, if all the parts of it are bad, we shouldn't sit around and fix every little part, the bill needs to be scrapped and a new solution needs to be made.

                Over the past year Common Core has been quite a controversy. The thought of a federally created standards doesn't sit well with most people. Neither does trying to develop a standardized way to test all children. It ignores the uniqueness of individual children and treats them like numbers. According to Neil McCluskey at the Cato Institute, "So is the Common Core a bad idea? Absolutely. It is a federally coerced, one-size-fits-all regime that ignores basic, human reality."

                A restaurant in Florida has started putting an ObamaCare surcharge on its checks to help offset the cost they will incur by being required to offer more of their employees insurance. Now some might see this as some business who is just trying to get their 15 minutes of fame for pulling this stunt. However, the company has hired a consulting firm to help them determine what their cost of offering insurance to all full-time employees. Clark, the restaurant owner, estimates the cost will be around $500,000 and hopes that with this surcharge they will be able to raise $160,000. It seems those in Washington who passed the bill would tell the company to just reduce their profits, because you know, they know the books better than the business owner.

                I have already addressed this in a previous post, that the President has called for an end to Austerity! This is an excellent article because it 100% rips on the notion that we were actually instituting austerity measures. Then it goes at Krugman who has been claiming the European Austerity measures have nearly devastated nations. Here's a little taste of the article, "In 2008, the federal government spent just a hair under $3 trillion. After six years of President Slash-and-Burn, spending has shrunk to almost $4 trillion. If we keep cutting like this, it will be down to $5 trillion before you know it."



Wednesday, February 26, 2014

The Daily News Byte


                This is an interesting blog that goes at the heart of private business being forced to offer their services to homosexual wedding ceremonies. The news has recently been riddled with stories about the oppression of homosexual couples that are just looking to obtain equal rights as heterosexuals. The typically accusations brought against mostly Christian organizations is that they are denying these people their rights and are then being brought to court. What this blog gets at is that none of these businesses have ever discriminated against gay people because they are gay. Most of them have been good contributors to society, but just don't want their products affiliated with an act they find sinful. As businesses have said, they are more than happy to make baked goods or take photos of gay's, they morally cannot use their resources for the wedding ceremonies. The connection homosexuals make with blacks is disconnected because homosexuals are being served all across the country by Christians and Christian organizations. People of color were refused not because they wanted someone to advertise, but specifically because of their skin color. So they received no service at all. Now, homosexuals are getting the law on their side and carving out special privilege. A bakery might supply cakes to a KKK member, but it should possess the right to refuse to bake for a rally.

                When a President leaves office, they are able to have their records sealed for up to 12 years. For President Clinton, that ended in 2013. So far, the records have not been released to the public but it appears most of the archive is scheduled to be released. The Clintons, as well as President Obama, may be able to make a case for keeping certain records sealed. This will likely set up a court battle should Hillary decide to run for President, and will likely give a Republican contender some ammunition claiming that she has something to hide. Which is no doubt the case, some of the papers may be sensitive or classified, but others have the possibility to rehash old controversies from the Clinton years. We'll have to see what sort of things are released

                Due to the massive failings of just about everything the Democrats have put into place, the mid-term elections could be a disaster for them. So, in order to mount their defense, they have decided to target women voters. By using the same rhetoric as always, Democratic campaign strategies will be adjusted to focus on targeting women and promising higher wages and more benefits. The typical promise offered by Washington. Many studies have been done on income inequality among the genders, and depending on who you read, it's a big issue or it's mostly a myth. There is sometimes a difference in pay between a man and a woman in the same job, but that does not necessarily mean it's inequality. Currently, the highest earners are typically male, so the overall income goes to men. Also, more women stay at home with children than do men, so the gap widens. Also, typically, women don't have as much time in the workforce due to children. Also, insurance costs for women are higher because they typically require more services and businesses account for things like maternity leave (one of the promises by Washington is to extend that leave time). Check out some more on the topic at Forbes

                Ah Joe Biden, such a respected politician and a clear thinker before he speaks. Wait, I think I've got that wrong.  He is of course the blabbering fool. His latest accusation is claiming the Voter ID law in South Carolina is based on 'hatred' and not helping to reduce voter fraud. One thing is always sure, Democrats say there is no fraud and Republicans say there is. Biden of course references this as being a step backwards for civil rights. The democrats were also dealt a blow by the Supreme Court when it struck down critical elements of the Voting Rights Act. So it must then be a conspiracy between the Republicans and the Supreme Court, because you know, those two are always in sync (not). All South Carolina is asking for is some way to identify voters, seems pretty simple to me, so that people can't go in multiple times under false names. But of course, the Democrats, who claim to be for the poor, are calling this discrimination against those who don't have government issued ID's.  So, here's the choice, let people fraud the system or some people might have a harder time voting.

                With the new Presidential budget to be released, the President has called an end to the "Age of Austerity." This is hard to read without falling on the floor laughing, or wrenching in pain. Since Obama took office, deficits have skyrocketed. As Michael Tanner points out, "the real Obama debt increase has been more than $4.7 trillion." If that's his version of austerity, I don't want to know what he thinks are appropriate for regular spending. The only deficit cutting that was accomplished came through the sequester, which everyone blasted and now Washington is trying to undo. So, who knows what sort of soaring deficits await us, since Obama's massive debt increase was his version of 'austerity.'


                I don't know how many people who read this have ever been to Alaska. I have and it's beautiful. Probably the most beautiful place I've ever been. There aren't many requests that come out of this state for federal assistance (that I know of) so when people in a remote village ask for the ability to make an emergency road to get to an airport, you would think that would be fine. However, their efforts have been shut down because of the wildlife that inhabit the area. The Secretary of the Interior has blocked efforts for this road and is essentially putting the safety of animals above the inhabitants of this small town. They make it sound like if they build this road there will be no more wildlife refuge, when in reality that's pretty much all Alaska is. People in the small town have died in part because they were unable to evacuate because there is no access to a road and the little airport can't handle the storms. So, I think it's time for the families who have lost loved ones to send pictures of those they lost, along with a bird picture and ask, "which is more important to protect?"

Tuesday, February 25, 2014

The Daily News Byte


                According to a recent study by the Center for Medicare and Medicaid Services (CMS), 11 million employees of small businesses will face higher premiums under the new law. They also project that 6 million will see their premiums reduced. This is due to Obamacare not discriminating based on age. So, older workers will see their premiums likely go down, while younger workers will see theirs go up. This comes as just another blow to the signature health law that defines President Obama's presidency. Coupled with the failure in implementing the program, people receiving notices that their insurance is cancelled, and reports of people not being able to get access to medication, this provides even more ammunition for the Republican party come election time. This is precisely the problem when the government acts before it has all the information. We were told to pass the bill to know what's the consequences would be, well it's passed and so far it's been mostly bad news.

                The White House is sticking with optimism. Currently, the number of young people signing up for Obamacare hasn't met the projections. This presents a problem because the young population is supposed to help offset the costs for those who are older. A report was conducted by the Kaiser Foundation that showed 40% of enrollee's needed to be under the age of 35. The current statistic is at 27%.  The White House is claiming that based on the data they are seeing, they are not worried and that they do not need to meet the 40%. They are claiming that if a lower percentage of people sign up, then premiums will only increase around 2.5%. While that number seems small, I doubt the young (who are already paying higher premiums) see this increase as something small. Coupled with the news of small business employees paying more, then the lack of youth to subsidize the program, the likely cost of what people will pay is unknown. To try and help the youth sign up, Michelle Obama was on "The Tonight Show" saying that the youth are not invincible. That's true, but the youth are also typically among low income earners so they are deciding to not pay the high monthly premiums. And, because they are young, they typically don't need most of the services required under Obamacare.

                A Republican proposal has been put forward to help simplify the tax code. Currently, there are seven brackets, under the new plan that would be reduced to two, 10% and 25%. There would then be a 'surtax' on the richest of the rich at 10%. According to the Joint Committee on Taxation, the proposal appears to work and almost all Americans would face a tax rate of under 25%. The details of the plan will be released, so we will know more about it tomorrow.

                A great column by Thomas Sowell. His focus for the article is in regards to upward mobility, no doubt this was brought on by a recent article citing a study saying the US doesn't rate 'high'. With these studies, when income mobility is studied, what typically isn't taking into account is people who don't aspire to move up. We all believe that everyone in the lower classes wants to get into the higher ones. Not everyone aspires for greatness and wealth. By looking at numbers like High School dropout rates, it's not surprising that people in this category don't end up being wealthy. And when the mobility numbers are presumed to be 'low' all we can do is think of how to bring them up. But the only way to do this in realty is for the state to be with children all their lives, pushing for something they don't want to achieve. Maybe something more interesting to study isn't the numbers of social mobility, but to try and define possible mobility barriers.

                An opinion column was written that claims global warming is a fact, and one of the major contributors, humans. This comes from a report that was done by the Guardian newspaper in the UK. They assessed thousands of global warming journals and found that 97% agree that global warming is happening and humans are in part to blame. Now, for one, many journals dealing with climate change are most likely to be sympathetic to the cause. As with all journal articles, they go through a selection process before they can be published. So, an easy way to get rid of the dissenters is to not publish their studies. What is more likely a more accurate assessment of what climate change analysts believe is to survey them specifically. This was done and found that only 52% of climate scientists support the idea that global warming is man made. More than 1,800 meteorologists were surveyed in this study by George Mason University and Yale University. So, why the contradictory numbers? Well, unlike the CNN article would have us believe, there is still room for debate over global warming.


                I can't get enough of economists being proven wrong, especially when it's Paul Krugman. Dan Mitchell from the Cato Institute flat out shames Krugman in his claims that Germany is an example for Keynesian economic policy. While it's true that the government of German still grew, in comparison to other nations it was a good deal slower. Krugman is blasted nations that promoted austerity measures and tries to show how poorly they are because of it. Then claims that Germany is doing well because of Keynesian policies. As the data shows, Germany's rate of growth was slower than those countries Krugman claim implemented 'austerity.' 

Monday, February 24, 2014

The Daily News Byte


                Piers Morgan is having the plug pulled on his primetime show.  Due to his lack of ratings and anti-American feel, CNN has decided to remove him. After all the controversy around his show during the gun debate and lack of assimilation into American culture, he just didn't fit. It appears that everyone is looking for reasons as to why his show wasn't successful. From his accent to his policies, everything he seemed to advocate didn't sit well with the American audience. It makes sense, given his British origins, the American people didn't seem to really care what he had to say. Maybe it's time for Morgan to look for a new career, since he not only has failed here, but also in his native country.

                Ah Paul Krugman, the accomplished progressive economist. Keynesian at heart. Today his opinion column is to comment about the 'death tax.' He then goes on to attack Republicans as a whole for their plan on combating Obamacare, which pretty much has come down to stories of people who lost their insurance. In talking with the death tax, Krugman points out that it only effects the minority, millionaires. He seems to have no problem with this because it doesn't have anything to do with 'ordinary' Americans. Personally, those people earned that money and they only reason that tax exists is to get more money from them, it doesn't seem to make any logical sense. Isn't death a tax enough, and why don't the wealthy have the freedom to pass on their earnings to whom they please without worrying about an extra tax. He then goes after the personal stories of people who have lost insurance due to Obamacare and finds inaccuracies in their stories. Krugam is great at putting up distractions and taking a few examples of error to disregard the entire thing. I guess Obama's delay of the employer mandate was not because people were actually losing their coverage, but because he fell for the dishonest reports from Republican lawmakers, at least that seems to be what Krugman wants to believe.

                This is an interesting little piece that talks about economic mobility, how people move between being poor and rich. Economists note that economic mobility still occurs, and at the same rate today as it has since the latter half of the 20th century. But, while that sounds good, the percentages moving between classes appear to be low, at least according to this author. While America isn't the highest on income mobility, the author claims that the mobility which they do have isn't high. The interesting thing about the claim 'high' is that it isn't defined. My main question is, what is the desired income mobility percentage and who determines it? The author goes on to say that since income mobility isn't high, we should focus on standards of living for the poor instead. And he then notes how standards of living have skyrocketed since the mid 20th century. Amazingly, with our standard of living shooting up, so does our definition of people who are poor. So you can't compare those who were poor in 1950 with those in 2014, because they are in totally different circumstances. Then, he says "you need to either get wages growing or talk about things that scare politicians, like “redistribution” and “taxes.” I'm sorry, but since when did redistribution of wealth create income mobility? If you're taking from the top and giving to the bottom, you will move the top down and the bottom up, there is no wealth created.

                The Supreme Court has rejected appeals from the NRA on handgun restrictions for those between 18-20.  From the pro-2nd Amendment view, that right only applies to those who are over the age of 20. This is an interesting piece though, because in some states you may actually carry a gun if you are under 21. In my native state of NH, I was unable to purchase a pistol; however, I was (and did) able to obtain a concealed carry weapons license. So, in NH I was legally allowed to walk around with a loaded gun but unable to go into my local gun shop and purchase one because of federal law.


                Secretary Hagel has proposed reducing the size of the American military to below WWII levels. This will come as a good thing to libertarians and liberals, while as a sign of weakness to many conservatives. To the conservative, it will show the world that the US no longer is trying to keep its position as the dominant power of the globe. Demonstrating a weak foreign policy. To the rest, it will be a relief the US appears to be more committed to less foreign intervention. As the Hill notes, it's unnecessary for such a large military force when we are not fighting a large land war. However, just because we are reducing personnel, doesn't mean that American intervention abroad will stop. What used to be reserved for ground troops will likely be assigned to drones. 

Saturday, February 22, 2014

The Daily New Byte


                The UAW is planning to appeal the recent vote at the VW plant in Tennessee. They are advocating for a revote due to third-party intervention. Funny thing about this little article is that the UAW is looking for a revote because of conservative intervention and threats that the company will lose funding. I call that leveling the playing field because I'm sure all those union advocates made no threats if they voted 'no.'  Oh wait, VW made the threats..." The UAW challenge comes days after the top labor representative on Volkswagen's supervisory board suggested that the anti-union atmosphere fostered by Southern conservatives could lead the company to make future investments elsewhere. " So, conservatives say if you pass the union measure then funding will be taken away, and the pro-union people say if you don't pass we'll take the company elsewhere.  So maybe if it passes, the workers can sue for a revote due to union intervention!

                Well, it seems that the FCC has thrown the survey of American newsrooms in the trash and is doubling down on net neutrality. Critics and proponents are both worried that the increased regulatory power given to the FCC is something to be worried about. The most likely scenario is increased government intervention, spying, and regulation of all the things on the web. It's amazing when we in the US blast nations such as China for  regulating their internet, then propose rules that make it possible here.

                So, according to the FAA the use of commercial drones is illegal. When did such a thing become a law? If anything, government drone use should be illegal. But, it appears that many today are using drones anyway and don't care what the government has to say about it. With prices of these things coming down, the FAA doesn't have the ability to regulate these drones at all. Kind of odd, why pass a law that is impossible to enforce. Typically it means that if one or two people are caught are going to be made an example.


                So soon after De Blasio of NY announced a traffic initiative to lower speed limits and make the roads safer, his caravan was caught speeding down the street and blowing through stop signs. Now the police of covered for him, saying that sometimes it's necessary for this to take place. But the interesting part comes when the mayor said this "We want the public to know that we are holding ourselves to this standard." I guess when he used the word 'ourselves' he didn't actually mean himself or his driver. Politicians and hypocrisy, they go together like bread and butter.

Thursday, February 20, 2014

The Daily News Byte


                It appears that the FCC is looking to study the American media. Supposedly, they would be sending FCC employees into news rooms across the country and analyzing their news stories. According to the FCC's supporters, they are looking to just make a survey and will not be regulating any kind of content. My main question is, if they just want a survey of information and plan to essentially do nothing with it for policy changes, what's the purpose. Also, why do such an extensive study by sending people to news stations just to watch. When a government agency claims it only wants to survey and that regulation will not follow, I am highly suspect, especially when those claiming to just want to observe are a regulatory agency. That would be like the IRS coming into your home to watch you do your taxes, they claim to be there to just watch, but won't make any judgments. Yeah, right.

                Why does anyone let Joe Biden near the press? I still can't believe the man made it to the White House. He recently claimed that even if the sign-ups for Obamacare don't hit the projected numbers, by between 1 or 2 million people, that they still had a 'hell of a start.' It's an interesting analysis of what's actually happened. We don't even know how many people have paid their premiums and what portion of those enrollees were the victims of losing their coverage due to Obamacare. So, the government said 7 million by March. But if they make it to 5 million, we don't know how many are receiving insurance, and a portion of them are people who lost coverage, that to Biden is still a good start. Only in the government can not reaching a goal by a few million still be considered good.

                With all the controversy surrounding the Snowden files, public outcry from here at home and abroad would make one think that the NSA would be looking to reduce its spying abilities and dismantle some programs. But, according to the WSJ, it appears the NSA is looking to expand! It seems like the data is being held due to the impending court cases, and who knows what the outcome will be of those. But, with the current expansion happening, does anyone truly believe that afterwards the NSA will just destroy all records? I mean, the press will report that, but we can never know for sure.

                This short little video goes on to explain why essentially, all politicians sounds exactly alike. The simple answer, they must because of majority rule. Because of majority rule, candidates need to soften their positions to gravitate more towards the independent and undecided voters.

                It would appear that I wasn't the only one making a connection between the current interventions in Syria and Ukraine as a continuation of the Cold War. The President directly said that "Our view is not to see it as some Cold War chessboard where we are in competition with Russia," Obama said, adding that the events in Syria and Ukraine were “an expression of the hopes and aspirations of the people." Now doesn't that just sound inspiring. Washington only cares about the people in Ukraine. It still doesn't detract from the fact that two major superpowers are essentially using these nations to achieve their own political ends.

                This is an op-ed piece by Thomas Sowell, a fellow of the Hoover Institution. He highlights that many of the Republican 'leadership' have essentially become so disconnected from the people that they appear to no longer think it's necessary to convey their ideas. Ted Cruz, a new guy, has created such political controversy in since he's been in Washington. One of the main reasons is because he is able to actually articulate the ideas of the Republic party, which he seems to go against. Because he is not playing DC's game, he is getting blasted in the media. The Republican leaders and keeping their heads down and not communication, and Ted Cruz is filling that gap.


                Okay, to start, just the title of this article is so wrong on so many levels. First, how has our society come to look to the President for this action? Where does he possess this authority? Each day I read the news I come back to a ground breaking book "The Cult of the Presidency." Everyone must read it. Second, is the President, frankly, stupid comment: “Improving gas mileage for these trucks is going to drive down our oil imports even further. That reduces carbon pollution even more, cuts down on businesses’ fuel costs, which should pay off in lower prices for consumers. So it’s not just a win-win, it’s a win-win-win. We got three wins.” This is a classic move, highlighting the things that make his argument work. He just blows by the only thing that matters, cost. If he raises standards, yes companies will pay less in gas and save money in that area (yay!) but, how will the company achieve these better standards? Well, if they are to high, they need new trucks which will cost lots of money (sad) and drive up prices. The author of this article is a trucking company, and they praise the President for this (so much for shutting out Big Business Mr. President). Here is the truth of the matter, a large corporation has the ability and funds to invest in new technologies that small companies do not. So, small business goes bye bye while big business reaps the benefits of removing competition.

Wednesday, February 19, 2014

The Daily News Byte


                The CBO has recently released a report concluding what everyone already knows. By increasing minimum wage, the economy will shed aprox. 500,000 jobs. But, on the bright side, it will also raise the income of many and bring some out of poverty (duh!). Of course increasing wages will increase income for some, that has never been disputed. The dispute comes from, will you give more money to some and life 900,000 out of poverty while putting 500,000 into it? It all sounds good when it's spun saying 900,000 people will be lifted over the poverty line, but it's not true. Once you factor in the 500,000 losing their jobs, you've lifted 400,000 from poverty, and those are still all estimates. So, the President who claims to be for the 'little guy' is going to lift some out from poverty and plunge others into it...good job!

                This type of 'journalism' or whatever you want to call it is awful. The author of this piece, Roger Simon is trying to resurrect the news from George Zimmerman in a case where a jury did their job and got the case right. It's a piece involving Michael Dunn, the murderer who was found guilty for killing a young black teen. He explains the events of the night, and it is clear that Dunn is guilty, especially since he got out of his car and kept shooting at the kids. His common denominator, Stand your Ground Laws, because "Hey, this is Florida. The Gunshine State" Simon states. This man is such a fool it's unbelievable. In his mind, because people have a right to protect themselves with a firearm, as affirmed by the Supreme Court, it means it's the wild west! Instead of blaming the person, he blames the defense! Also, the evidence in the Zimmerman case suggested that Trayvon was standing over George beating him and the gunshot wound trajectory proved it. And if someone was standing over you beating your face in, I think you would be wishing for a way out because "please stop" probably won't work.

                Is it me, or do politicians just look for something to say against a person of the other party. Why is this even news? Who cares about what Obama said about Art History majors and who cares if he apologized to the person who wrote him about it. I've got an idea Rubio, how about you concentrate on things that matter.

                Someone needs t forward this to the White House and to John Kerry. Kerry is the one who claimed that climate change is the most feared weapon of mass destruction and the President went to California to talk about this issue due to their drought. But it would appear that according to real scientists, not those flat earth people Kerry talks about, the drought California is experiencing is similar from the 1930's and 1950's. Also, "Through studies of tree rings, sediment and other natural evidence, researchers have documented multiple droughts in California that lasted 10 or 20 years in a row during the past 1,000 years -- compared to the mere three-year duration of the current dry spell. The two most severe mega-droughts make the Dust Bowl of the 1930s look tame: a 240-year-long drought that started in 850 and, 50 years after the conclusion of that one, another that stretched at least 180 years.”

                The President has done it, he has figured out a way to force business to up their standards, develop new technologies, save the environment, and it will make the price of goods cheaper! Actually, I think he got that a little wrong. If it was better for business, why not do this already? Maybe in their budgets they can't raise prices and be competitive, and they would need to raise prices to be able to afford new fuel-efficient vehicles. Well nothing to fear, President Obama has made it a requirement for all. Sadly, this will likely hurt small businesses that can't absorb the costs of meeting new EPA standards...new motto for Obama, adding small businesses to my welfare state!

                Every time I see anything in regards to ADHD all I can think about is a satire article by the Onion where the disorder is called "Youthful Tendency Disorder." The good news about this article is that it seems to suggest many physicians don't exactly know what they are doing and are prescribing medication to people who don't need it. The good news about that is seminars are being held to correct that problem and it's recognized as a problem.  What they really should do is give the seminars to parents. I just get a feeling parents bring their kids to these evaluations because they aren't doing well in school or don't listen to them. It's called being a kid. Class is boring, and you can either not pay attention by looking around, or by sleeping on your desk. A child is rolling around on the floor uncontrollably, what young boy doesn't do that (I was usually reenacting a 3 Stooges move, classic). An amazing part of the article is describing a kid with ADHD by playing gameboy and ' flitting around the room distractedly.' Uhm, if that's all you got, that's probably most kids. Cure, take away the game device, get your kid outside, and discipline them for behaving badly. South Park demonstrates it perfectly, while in a room full of jumping kids, the teach yells "SIT DOWN AND STUDY."

                A wealthy Democrat supporter is rallying people together to stop the Keystone Pipeline. You know, they are raising the minimum wage, putting people out of work, and then killing potential for job growth in order to save Bambi. Since when did we put the concerns of fuzzy critters over the well being of people stuck in poverty?


                The nation of Ukraine is in a state of disarray. Some 25 people have been killed in Kiev. Naturally, the EU and the US are looking to intervene. There is a bit of irony in the situation, the recent escalation of the protests are in response to an Anti-Protest law (I bet the government didn't see that coming). Of course, the EU's response is to put sanctions on the government and Russia is trying to aid the country. I thought the cold war ended. Russia supports Syria, we oppose. Russia supports Ukraine, we oppose. The Cold War may have ended, but we're still playing the same games.

Tuesday, February 18, 2014

The Daily News Byte


                It appears Rand Paul is testing the waters and laying the foundation for his potential 2016 Presidential run. With a stop in Texas, Paul spoke with high end donors and delivered a more libertarian message. His warning to the state, if the Republican party doesn't change, Texas will go blue. And his analysis is most likely right. Given the increasing city population on Texas, and the increasing population of Hispanics, it won't be much longer until Texas turns if policy proposals aren't introduced to increase votes.

                Kathleen Sebelius claims that there is absolutely no evidence that Obamacare will decrease employment. She claims that it is a myth and that you can ask any economist and they will tell you exactly that. Her only issue is that the CBO is pretty much saying otherwise, and they're economists. While in the CBO report it didn't actually claim employment would disappear, just the equivalent of 2 million jobs. So she may be right, employment might not go down, but the economic effect is going to be the same.

                This commentary piece written by Gene Healy (author of Cult of the Presidency) cuts to the main problem with the modern presidency. The people enable him to usurp power not granted to him by the Constitution which he swears to uphold.  University of Chicago political scientist William G. Howell released a book highlighting this exact phenomenon. Howell writes, “from nearly the moment he assumes office, the most self-effacing presidential candidate will quickly be transformed into a great apologist for presidential power.” Mr. Healy writes, "If there’s ever a War on Presidents Day, sign me up."


                What shocks me most about this article is that people find it shocking. Mortgage institutions appear to be taken off guard by the fact that so many young people are going to college on loans so they can't afford to buy a home right away. The problem is cyclical. Example, Sally is a High School Junior. Her teachers, counselors, and parents all tell her she must go to college to make money nowadays. Sally is an average student who isn't sure what she wants to do but gets accepted to a local private university. She then realizes she must take out loans. To her, it's no big deal because everyone has told her she will make good money with a Bachelor's degree. Upon graduation with a psychology degree, she is $35,000 in debt (private schools cost more usually). She then realizes that the jobs she thought she could get don't exist or don't pay enough. She finds an administrative job, so she's lucky because unemployment is high for her category still. After working a year, she wants to buy a house, but a lending institution sees she's still entry level and is carrying this debt that will last as long as her mortgage, so it's like buying 1.5 houses. Now she's stuck paying for an apartment and can only put a small amount away in savings, so a house is out of the question. It's not very complicated to see how detrimental this will become to the economy, millions of Americans are being enslaved to the government  due to loans and economic productivity is going to be crushed.

Monday, February 17, 2014

The Daily News Byte


                Recently, John Kerry went to Indonesia and spoke about the dangers of climate change. In his own words, “Climate change can now be considered another weapon of mass destruction, perhaps the world’s most fearsome weapon of mass destruction.” Over dramatic, probably. But it does make you almost feel a sense of urgency. Until you realize that it's not actually a weapon that a foreign nation can use in war, so there isn't really much to fear. Also, Kerry went on to criticize those who don't agree that climate change is actually happening, referring to them as 'flat earth' people. It appears Mr. Kerry knows enough science that he even denounced scientists who deny climate change. The real reason behind this new push for climate change is control. Once they declare this 'war' on climate change they are able to push massive regulatory bills through congress that will cripple some businesses and reward those who are cozy with the President.

                Eric Cantor came out swinging on Presidents day against 'isolationism.' At VMI, Cantor blamed the United States' hesitance in entering WWII on isolationist sentiments. His speech was aimed at the President for his multiple failings to show strength to the international community. But it was also directed at the Tea Party wing of the Republican party, as they are more libertarian in their views. Cantor then goes on to talk of the dangers of a nuclear Iran and the threat that poses to our alliances with Israel. Then, he sums up the speech that we must return to a position of strength and return to the days when we helped spread democracy to the world.

                The President returns to Washington today after spending a few days in California and offering the state funds to help cope with the drought they are currently experiencing. Along with that, the President has also hit the road advocating for congress to raise the minimum wage to the $10.10 per hour that government contracts will not  be receiving. Obama also plans to meet with representatives from Mexico and Canada to talk about trade agreements. An incredible feat: " But on Capitol Hill, Obama’s trade push has been stalled by Senate Majority Leader Harry Reid, D-Nev., who opposes granting him fast-track powers to finalize two agreements with Pacific Rim nations and the European Union." I guess Reid does believe the President can over step his authority eventually.


                This is a very interesting article that goes into the challenges that all presidents must face. Each president must bridge the gap between what the public expects, and what they are able to actually accomplish in DC. Presidents "justify their presidencies – both at the outset of their administrations and throughout their tenure in office – in the face of public expectations for heroism and greatness." This is the difficult reality that presidents face. However, something not addressed in this article is that the cycle just repeats every time. The public loves the candidate that looks most like the 'hero' and the candidates play to that image. Every year there are more promises, more money to be thrown around, more favors to be given, and this is precisely the problem with modern politics. The true problem with our current state of affairs is precisely addressed in Gene Healy's "The Cult of the Presidency." He traces through history how the public has come to worship the president and has forgotten the rest of the government, federal and state. For the system to correct itself, the people must first realize that DC does not have the answers to all their problems.

Saturday, February 15, 2014

The Daily News Byte


                Yesterday, the VW plant in Tennessee held a vote on whether or not they were to unionize. Many in big labor thought the vote would pass, causing Republican lawmakers to put pressure on VW by threatening to take away funding incentives. Even with the push from the labor unions and an endorsement from the Volkswagen company, the workers voted to not unionize, dealing a big blow to the UAW's efforts to make inroads in the south.

                One of the major selling points for Obamacare was that people with preexisting conditions would not have to pay higher premiums for coverage. As it turns out, there is a bit of a loophole when it comes to the prescription medication these individuals may require. There is a list of medicines that are covered under Obamacare, and some people with preexisting conditions like MS don't have their medication covered. They are currently required to foot the bill without any assistance. Also, with an issue like MS, there are no generic drugs, so medication is wildly expensive. This is what happens when you pass a bill before it's read.

                One of the best signs of a stagnant economy, a record number of college graduates (age group 24-34) are still living with their parents. Gallup put together figures of the state of college graduate employment and it doesn't look good for those recent graduate. "Among young adults who live with their parents and are working or actively looking for work, nearly one in three are in a substandard employment situation."

                "Judging by what happened after the 2007-2009 increase in the minimum wage, repeating that failed experiment over the next three years would first reduce the number being paid the minimum wage and then greatly increase the number being paid less than the minimum. It would also result in millions more young people being unable to find any employment even at wages far below the higher minimum wage."

                Conservative commentator S.E. Cupp is fed up with democrats trying to shield Hillary Clinton. Given the press around the likelihood of Clinton running for president, conservatives are going to plan questions in regards to Benghazi and Obamacre. The terminology used by RNC Chairman Reince Preibus ("very aggressive") has aggravated some on the left. Cupp's response, “So, Democrats can call Chris Christie fat, George Bush Hitler, Sarah Palin Caribou Barbie, Michele Bachmann crazy, Tim Scott a dummy and Nikki Haley the Seik Jesus – but calling Hillary ruthless?” Cupp remarked sarcastically. “Now, that’s a step too far.”


                This short video demonstrates the importance of property rights. While it may seem like property rights favor the rich, it actually benefits the poor the most. As demonstrated in the video, when property rights are not protected, those who are already wealthy and politically connected can easily steal the property of the poor, which is what happens in many 3rd world countries.

Friday, February 14, 2014

Minimum Wage



The minimum wage debate has emerged. It appears that every few years there is an outpouring of support to increase the federal set minimum wage. When President Obama announced they he was going to increase the federal minimum wage for government contractors, he set the stage for increasing the minimum wage for everyone. Through executive action, President Obama increase the wage for contractors to $10.10/ hour. When that number is extrapolated out, the least amount of money someone could make for working full-time (40hr work week) is just over $21,000 a year[1]. This isn't to bad for those who are most likely at the beginning of their working career or do not possess the skills to demand higher wages.

The framing of the debate is largely a myth. When you hear about people earning minimum wage by politicians, they typically throw out an example of a single parent trying to raise a family on minimum wage. What typically isn't revealed is that is almost never the case. According to a paper written by Mark Wilson, a former deputy assistant secretary of the US Department of Labor, the percent that fits the description of over 25, making minimum wage, and trying to raise a family is 4.7%[2]. That is not what is largely talked about on campaign trails. When listening to politicians campaigning they typically throw out some excellent one liners about how they will improve quality of life, or income equality. However, this ignores much of the debate and is used to get support from the voting public.

When you look at the entirety of the labor force, the total percentage of people making these low wages is less than 3 percent[3]. According to a report conducted by the Mercatus Institute, the largest group making minimum wage are those working in the food industry. Tracking their income becomes difficult because there is an incentive for not reporting cash tips. If an employee doesn't report their cash tips, the company must pay them at least minimum wage, but they will have earned more due to the unreported income. If the majority of those who work in food industries do not report all tips and make more than minimum wage, the percentage of the population making those wages decreases to 1.6 percent[4].

Many people seem to make it sound like if there wasn't a minimum wage, then people would be making next to nothing. But this ignores the fact that competition between companies drives wages, not the federal government. If it was the law that drove wages, you would expect that a large portion of the working population would make minimum wage. However, when you see that the high estimate of the minimum wage earners is 3%, that means that 97% of workers are earning more than the mandated minimum. Evidently it isn't the law that sets the wages, but competition between employers to hire those with the best skills.

In the Mercatus study, reference is made to one of the most famous empirical studies on the effects of a minimum wage increase. Card and Krueger's study on the effect of restaurant workers who had their wages increased in the state of NJ and PA showed no negative effects on unemployment. Surprisingly, according to their findings, employment figures actually increased after the minimum wage was increased. This sounds too good to be true, and in fact, it is. The methodology used in their study was flawed. Instead of using payroll information to measure the amount of minimum wage employees, they conducted surveys of management. They asked about employees, and their hiring decisions before and after the wage increase. So, they never actually measured real employment numbers, just intentions.

While trying to recreate this student, economists Neumark and Wascher targeted the same area as the Card/ Krueger study. Instead of using survey's though, they used the payroll data and found a large difference between their study and Card/Krueger. In the Neumark/Wascher study, they found what many classical economists expected, after the minimum wage increase, employment decreased[5].

The Mercatus study looking at all these different studies ran their own analysis of the unemployment figures in the state of New Jersey. NJ was planning at that time to increase its minimum wage by $1 per hour. According to the conclusions of the study, for those who do not have a high school education, unemployment is expected to increase by approximately 2 percent, those without a diploma, 1 percent. Those who have college degrees there will be no effect. This fits with the conventional wisdom that raising the minimum wage results in penalizing low skilled workers.

With the current state of the economy as a whole and the level of unemployment we are currently experiencing, an increase of the federal minimum wage is exactly something we don't need right now. Given that there is a correlation between increased minimum wage and a decrease in low skilled employment, increasing wages will only hurt low skilled workers. Also, with the youth unemployment figures already high, it will only make things worse.

In the words of Milton Freidman, when government institutes a minimum wage "employers must discriminate against people who have low skills." This is clearly demonstrated with empirical analysis.



[1] $10.10 x 40 x 52 = 21,008
[2] http://www.downsizinggovernment.org/sites/downsizinggovernment.org/files/pdf/negative-effects-minimum-wage-laws.pdf
[3] http://mercatus.org/sites/default/files/unintended-consequences-raising-minimum-wage.pdf
[4] Ibid
[5] Ibid p.15

The Daily News Byte


                A  Virginia judge in Norfolk has ruled that Virginia's ban on same-sex marriage is unconstitutional. This doesn't come as a surprise given that across the country courts are ruling state bans as violating the Constitution. Ever since the Supreme Court made its ruling last year, the states have been flooded with cases. This is the result that just about everyone predicted a year ago.

                The President plans to travel to California to announce that his new found authority gives him the right to combat climate change. As meteorologist-in-chief, Obama plans to allocate billions in assistance to California farmers. Also, because of the drought they are going through, Obama plans to push congress to do more to combat climate change. My question is, what does climate change even mean? If it's no longer global warming, and it's not global cooling, what is it? And if we can't exactly define what it is, how can we combat it?

                The UAW union is fighting to unionize Volkswagen in Tennessee. There will be a vote today to decide if they will unionize. There is a bit of confusion as to why the workers would want to join the union because according to reports, the pay and benefits are good. Management treats the employees well too. The truth of the matter is that the UAW is trying to make an inroad on foreign brands in the south where Right-to-Work is strong. The UAW claims to have both the employees and the company's best interest in mind, think back to some of the wildly unreasonable demands they had when Detroit was going bankrupt.

                Most of the recent court cases in regards to the 2nd amendment deal with the right to 'keep' arms. Usually left out is that part in the amendment about the right to 'bear' arms. Most liberal states, such as CA, MA, NJ, NY all have restrictions massive against having a gun outside the home. In a recent case, the Ninth Circuit Court of Appeals has upheld the right to 'bear' arms and sets up for a soon to come battle at the Supreme Court to define ones right to 'bear' arms.

                Thomas Sowell is one of my favorite people to read. He typically does a column every few days and it shows up on either National Review or TownHall. This post is exactly as the title reads, Random Thoughts.

                One California state senator is pushing for warning labels to be put on sugary drinks. The warning label would say,  "STATE OF CALIFORNIA SAFETY WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay." With things like this I wonder if they think the people of California look at soda as being healthy? I mean, who doesn't know that consuming large amounts of sugar is bad. How about instead of spending money on warning labels, invest in programs to get kids active. You can eat all the health food you want, but if you sit around all day playing video games you're still going to be fat and lazy.


                As I've been saying from the beginning of this debacle, it wasn't going to be long until pressure was applied to Congress to make increase the minimum wage. The President played a great political move because now the democrats are shown as helping the 'little guy' by increasing wages for some, and they have thrown the ball into the republicans court to do the same. The democrats are already putting their strategy together for how they are going to get a wage increase through the House. The idea of raising the minimum wage is already popular with much of the country and the republicans will be painted as unsympathetic if they don't increase the wage. Also, the accusations will be made that federal contractors make more money, don't you think the average American should make the same?

Thursday, February 13, 2014

The Daily News Byte


                The Senate took up the debt ceiling vote and passed the increase. When the measure came to the Senate, Sen. Ted Cruz opposed the matter and required a 60 vote threshold for the bill to pass. With that, Senate Minority Leader Mitch McConnell pressured numerous republican Senators to break the filibuster Cruz was using. The vote was 67-31 to allow the measure to advance. The Senate then passed the bill 55-43, along party lines.

                During the Presidents SOTU speech he talked about increasing minimum wage for federal contractors.  He has now officially signed that order. The President has already started putting the pressure on congress to match his rate increase for all Americans. The President urged Americans to call their representatives and urge them to vote to increase the minimum wage. Along with his encouragement for congress to act, he is claiming that by increasing wages for contractors he is forcing them to become more efficient and claims the government will not increase contractors' funds to absorb the higher wages. So not only is the president telling those contractors what to pay their employees, but is also telling the company that they have to pay more to their employees but won't receive additional funds. This formula seems like it will mostly backfire causing people to lose their jobs due to increased cost but no additional revenue.

                With the expectation of a difficult election this year, vulnerable Democrats are looking to the IRS for help. They are directly asking the IRS to investigate groups like Americans for Prosperity, and other private spending groups, to ensure they are not violating any tax laws. Essentially, they are going to use the threat from the IRS to drain resources and find any sort of tax violation. Also, the Treasury department is looking to adjust what is considered political activity, such as voter registration or mentioning a candidate's name in an ad. Amazingly, this is all being done in the open even after the scandal that the Tea Party has been the object of IRS attacks. Democrats are now doubling down on these efforts.

                Michael Tanner at the Cato Institute writes an opinion piece in regards to the recent postponement of the individual mandate, again. The president recently announced that employers with 50-99 employees will have the mandate for insurance delayed until 2016. Why the delay again? political insurance. It appears that the president is trying to prevent backlash from his signature achievement from causing his political party electoral defeat. As Tanner concludes, since Obama has set a precedent of delaying the bill, a Republican president could just as easily at least postpone pretty much everything in the bill as long as s/he likes.

                "In a nutshell, and in Reuters' own words, "the savings of the European Union's 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says." What is left unsaid is that the "usage" will be on a purely involuntary basis, at the discretion of the "union", and can thus best be described as confiscation."


                For the first month, Obamacare has hit its enrollment goal. For the month of January, nearly 1.2 million people signed up via the website. For the Obama administration this is good news because it means enrollment is going well and the website issues appear to be mostly solved. However, the overall enrollment numbers are still around 1 million less than expected. Also, of those who signed up, data isn't available yet with regards to who has actually enrolled and paid a premium for insurance and of those who enrolled, how many didn't have insurance previously. With the numbers still being down and young people not participating in the exchanges, it will have an interesting effect on the cost of the program.

Wednesday, February 12, 2014

The Daily News Byte


                Today the House of Representatives passed a 'clean' debt ceiling extension.  With most of the Republican party voting 'no' on the extension, Boehner was able to muster up enough votes from the leadership of the party to get the bill passed. With each passing day it's evident that the Republican party leadership are just Democrat light.

                It appears that Boehner has lost the trust from his own party. With most of them voting 'no' on the bill, there is a clear disconnect between him and the rest of the Republicans. Also, when you get praise from Nancy Pelosi, “I’m grateful to the speaker and the Republican leadership for giving this House this opportunity to act in a way that is consistent with the constitution," you know there's trouble.

                Janet Yellen, Bernanke's replacement at the Fed, has promised more of the same old policies. According to her, the Federal Reserve has a positive outlook and expects continuity. She was part of the team that developed the current Fed plan on the economy. While Yellen points to a reduced unemployment rate, the Times are at least giving that credit not to the Fed, but to the discouraged workforce that is no longer seeking employment.

                If you're interested in a bit of a rant, this is your article. A guest post on ZeroHedge dealing with the state of economic fallacies we encounter daily. There is a good bit of quoted economists, such as Henry Hazlett. Enjoy.

                Syria is a disaster.

                A guest post by Laurence Vance, from the Mises Institute, about the current state of American foreign policy. Since the Snowden leaks, more and more information has come to the surface in regards to NSA spying of foreign nations. Vance decides we need to go back and take a Jeffersonian approach to our foreign policy.


                Rand Paul, the leading non-interventionist in the House, is suing the President as well as the NSA for violating the 4th amendment. Paul cites that the 4th Amendment protects the American people from general warrantless searches.