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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.

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