Showing posts with label Poor Economics. Show all posts
Showing posts with label Poor Economics. Show all posts

Thursday, January 28, 2010

The State of our Union aka Obama's Plans for the Country



It took him 7,390 words interrupted by 91 applauses and a dozen or so laughter breaks. That’s applause ever 739 words or so. Try watching your favourite TV show like that. Anyways, here is a long list of things he said and some ideas I had when I read them. No, I did not waste my time watching it. I read it and computed the information.
"The toughest (letters) to read are those written by children, asking why they have to move from their home, asking when their mom or dad will be able to go back to work."
Simple answer: Not my fault; it’s the invisible hand of the economy leading us through the consequences of poor business practices
"For these Americans and so many others, change has not come fast enough"
I can’t stand the entitlement generation
"They don't understand why... Washington has been unable or unwilling to solve any of our problems."
That’s not how we roll in this Country. If the free market makes a mistake, the free market should fix it.
"It's time the American people get a government that matches their decency, that embodies their strength."
(APPLAUSE)
Applaud that? Do we really want/need a government that acts on every whim and fancy of the spoiled American people of the entitlement generation who know nothing about economics or fiscal or monetary policy? I submit a heck no.
"Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. We cut taxes for small businesses."
(APPLAUSE) (7th)
When those working families finally will see the effects of those tax cuts, they won’t notice them or remember that Obama told them that he did it. Talking about tax cuts is stupid—for 20 years things have been pretty much the same (yes, ever since Reaganomics)
"The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act."
(APPLAUSE) (13th)
"That's right, the Recovery Act, also known as the stimulus bill."
(APPLAUSE) (14th)
I’m glad he mentioned this, actually. At a time when the government looks absolutely stagnant, he reminds us that once upon a time they actually passed a bill and the measures of the bill were carried out, proving that when the government actually does pass a bill, those parts of the bill actually do come to pass.
"jobs must be our No. 1 focus in 2010, and that's why I'm calling for a new jobs bill tonight."
(APPLAUSE) (15th)
‘Oh yeah, I think a bill about jobs would be good, yeah, that’s a good idea. Whaddaya say, congress? You think that’s a good idea?’
"So tonight, I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat."
(APPLAUSE) (18th)
‘Yeah, that money I talked about earlier that we recovered to pay for the bailout—let’s spend it. We’re already in a hole of debt that reaches to China (no joke), so no one even thinks we have a chance at recovering the budget deficit. If it gets too bad, we can fake a manned landing to Mars and borrow money from the Martian colony we discover’
"Now, the House has passed a jobs bill that includes some of these steps."
(APPLAUSE) (25th)
But didn’t you just say you wanted one?
"People are out of work. They're hurting. They need our help. And I want a jobs bill on my desk without delay."
(APPLAUSE) (27th)
But you just said...
"But -- but the truth is, these steps won't make up for the 7 million jobs that we've lost over the last two years."
THEN WHY DO YOU WANT THEM IN THE JOBS BILL?
"You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China's not waiting to revamp its economy; Germany's not waiting; India's not waiting."
China’s also not doing anything about human rights and India’s not doing anything about ethnic violence and a class system that makes the people hurt worst in our recession look like the beneficiaries of a bull market. But you know, it’s all about priorities.
"These nations, they're not standing still. These nations aren't playing for second place. They're putting more emphasis on math and science. They're rebuilding their infrastructure. They're making serious investments in clean energy because they want those jobs.
Well, I do not accept second place for the United States of America."
(APPLAUSE) (29th)
I honestly don’t think we’ve been playing for ‘second place,’ and you failed to mention which of these nations were in first, what they were in first of, and how being in first would raise our quality of life. But then again, if you said all of these things it would make for a very boring, yet extremely informative and relevant speech.
"Even if you doubt the evidence, providing incentives for energy efficiency and clean energy are the right thing to do for our future, because the nation that leads the clean-energy economy will be the nation that leads the global economy, and America must be that nation."
(APPLAUSE) (36th)
This is true. Actually, come to think about it, it’s not the first time the government has scared people in one way or another in order to create a new market in the economy to spur growth and job creation. It’s actually a good idea. If I were counting good ideas, I’d be at what, 2, now? And people have clapped 36 times already?
"we need to export more of our goods.
(APPLAUSE) (37th)
"Because the more products we make and sell to other countries, the more jobs we support right here in America. So...
(APPLAUSE) (38th)
"So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support 2 million jobs in America."
(APPLAUSE) (39th)
A bold goal, and trust me, this is something we’ll hang over his head this time next year when it’s not done. Why won’t it get done? STUPID SUBSIDIES FOR CORN AND SUGAR THAT WON’T GET REPEALED IN THE EFFORT TO INCREASE EXPORTS
"And that's why we'll continue to shape a Doha trade agreement that opens global markets and why we will strengthen our trade relations in Asia and with key partners like South Korea, and Panama, and Colombia."
(APPLAUSE) (42nd)
No one has a clue what he’s talking about. Any American who watches the Olympics or the World Cup hates the South Korea, and 25% of America think it’s the same as North Korea. 70% of Americans probably are wondering if he just legalized cocaine, too.
"In the 21st century, the best anti-poverty program around is a world-class education."
(APPLAUSE) (43rd)
The global average of years of educational instruction is 6.2 years. In the States we top the list at 12. In the latest Trends in International Mathematics and Science study, the United States ranks 9th in a study of 48 countries, although only five countries have a statistically higher score than us: Chinese Taipei, Rep. of Korea, Singapore, Hong Kong, Japan. Does the theory about education preventing poverty hold?
Per capita GDP (CIA factbook)
#17 US 46,900
#24 Singapore 39,500
#25 Japan 38,700
#29 Hong Kong 30,700
#40 South Korea 19,600
#43 Republic of China (Taiwan) 17,100
Granted there are other factors to this, we just got fed a crock.
"And in this country, the success of our children cannot depend more on where they live than on their potential."
But it doesn’t, it depends on how much the property around where you live is worth.
"To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants."
(APPLAUSE) (44th)
Students know it’s better to go to college. While a lot don’t go because they can’t afford it, I think most who think they can’t afford it don’t know that they can get help already. And let’s face it, kids hate school and think 12 years is enough and they need a ‘break’, but don’t know that the odds of going to college after taking a break is low.
"no one should go broke because they chose to go to college."
(APPLAUSE) (45th)
Well, no one should major in anthropology, English or organ performance.
"And it is precisely to relieve the burden on middle-class families that we still need health insurance reform."
(APPLAUSE) (47th)
Middle class families could probably afford health care if they A) lived within their needs B) didn’t smoke C) didn’t drink and D) got regular exercise. I recognize that it’s a problem for a lot of people who do these four things, too, but today’s middle class is quite stratified, maybe I refer to the upper middle class.
"But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know.
(APPLAUSE) (52nd)
"Let me know. Let me know."
(APPLAUSE) (53rd)
Maybe the status quo is the best approach for a people who cringe at tax hikes and don’t like more equality-based (howbeit more bureaucratic) approaches such as those in Canada, Britain and France.
"Now, even as health care reform would reduce our deficit,"
BS. And everybody knows it, that’s why no one applauded.
"Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. And if I have to enforce this discipline by veto, I will."
(APPLAUSE) (58th)
BS. Show me a Congressperson who ever lived in a cash-strapped family that lived within a budget and I’ll show you a thousand Americans cash-strapped families that are that way because they don’t live within a budget.
"But at a time of record deficits, we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. We just can't afford it."
(APPLAUSE) (60th)
So they won’t have any money to hire you.
"So I'll issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans."
(APPLAUSE) (62nd)
An executive order to make a great leap forward? Who is this, Chairman Mao?
"That's why, for the first time in history, my administration posts our White House visitors online."
Well, whadday know, Michaele and Tareq Salahi...
"The more that TV pundits reduce serious debates to silly arguments, big issues into sound bites, our citizens turn away."
Do they really?
"We don't quit. I don't quit. Let's seize this moment, to start anew, to carry the dream forward, and to strengthen our union once more."
(APPLAUSE) (91st)
There was a lot of rhetoric at the end. He should have said “Carpe diem!” and pointed his finger to the sky, then tapped two fingers over heart twice, touched his lips and given the peace sign. You know what this country needs? A home run chase! I know it’s tainted by steroids, but whatever, it was so exciting, and everybody got into it, and life was great. Steroids saved baseball, and they can save our country, too.

Monday, September 21, 2009

The Economy of Poor Fan Support

Many students may be disappointed with the football team's performance on Saturday. Most of us, I believe, expected more of a game than we saw. But for the most part, what happens on the field is beyond our control. For the most part, all we can do is watch. For the most part, at least.

There was a day when BYU fans all across the East side of the stadium would stand and yell the entire time we were on defense. Teams had trouble in the huddle and audibling because of the noise in the stadium. Alas, Saturday after the third play of the game Florida State had a first down and many fans were so amazed by this that they felt they could no longer rise and shout, for these were not the Cougars they thought would be out. Fans continually lost momentum as FSU scored, O'Neil Chambers fumbled, and the halftime show put them to sleep. By the third quarter, there had been enough turnovers and Florida State touchdowns for many fans to consider the unthinkable and leave the game a whole quarter early. Fans were already streaming out of the stadium causing traffic problems with twenty minutes left in the game, when Max Hall completed an 80-yard touchdown to McKay Jacobson, and missed that completely. There was still hope for the mighty cougars, yet they lacked the loyal strong and true, who claimed to join in song in praise of the team, with strong faith.

Why did this happen? That's easy to answer--adjustable rate mortgages. Yep, I believe the financial crisis made many of the best fans turn away from buying tickets this year because of their high price. The selling price was also too lucrative for many poverty-stricken fans to hold on to their tickets, but instead sell them to lessor fans in order to pay for food, rent, dates, etc. A small few of us stood the entire game long, cheering for a comeback, having heard stories of how the faith of our fathers brought miracles to pass in Holiday Bowls of past days, knowing that there was still hope for a comeback.

In the future I hope those who intend to leave the game early will sell their tickets, or even give them away, to someone who will rise and shout for four quarters of football. It's better for the team, it's better for fans, it's better for BYU.

Wednesday, March 4, 2009

On "Wealth and Poverty"

"Wealth and Poverty" was written by a BYU professor in, like, 1994 (revised several times since) and is the heated topic of many classroom discussions these days. I couldn't find a link to anything on line, but I have it saved as a Word document and will send it to anyone if you'd like to see it.

My wife Courtney told me about this paper last semester when she read it for a business class. The class discussion got very heated as people began to defend their feelings about the poor. Johnson claims that he often finds “anti-poor attitudes” among students, and that they see the poor as lazy, stupid, satisfied with being poor, and that they deserve to be poor. These are exactly the attitudes that Courtney told me were being defended by her fellow classmates. And what’s worse, these people hide themselves behind the curtain of what they regard as religious principles.


One of their biggest issues is with government support of the poor. I will admit to being on that side while I was younger, but I was hit with a giant liberal bullet my Freshman year out here at the Y and became more tolerant of some things. Since members of the church are most often social conservatives, they throw their votes to the Republican Party, as well as other right-wing organizations, and subscribe to all their platform has to offer, including economic issues. Many of the statistics Johnson quotes in his paper (written in 1994) describe the change in economic climate from the late 1970s to the early 1990s--a twelve year period in which Reaganomics highlighted the American economic system. During that time the poverty programs set in place were what Johnson called “wealth-fare” because of the subsidies and tax credits the big businesses received through Reagan’s trickle-down plan. Without needing to poll a group, or run a survey, I could probably tell you today that Ronald Reagan with his conservative, capitalist Cold War agenda is the most popular president in LDS culture, most likely known as the thirteenth apostle in many a Mormon home.

Reaganomics “solved” the economy with capitalism, and President Reagan tore down the Berlin Wall, proving capitalism to be superior to the socialist way of the U.S.S.R.. The combination of these ideas in LDS culture have culminated in animosity towards the idea of the government helping the poor. A lot of it has to do with “where my hard earned money is going, and why isn’t it my wallet,” but I think that’s exactly what Johnson’s telling us the problem is. We should want to help the poor. The idea of small government has taught us that the government should be taxing us less, allowing us to make wise decisions with our money and do as we wish. Johnson has observed that this belief in free capitalism comes from a core religious belief in free agency. Thus earning more money is what God would want us to do. In doing so, we pay tithing and are able to make more generous contributions to other church funds, as well as other charities as we wish. Such charitable institutions eliminate the need for socialist governments consisting of the liberal devils of universal health care and employment safety nets, right? No.

(The following remarks do represent my feelings concerning policy adoption of the United States, only my approval of similar institutions in other countries and cultures)

What churches and charities do is not sufficient to care for the needs of those who need it. Government programs that give aid to the impoverished are not against the gospel, but part of God’s plan as we are to care for each other. Any society that believes in looking out for their fellow countrymen and creates government institutions which can do so deserves the respect of all practicing Christians. These programs are very expensive and create a heavy tax burden on the citizens, which is not a very appealing thought to Americans who live in a country where lower taxes lead the rhetoric of politicians smoozing their way into office. Countries that agree on such bold ideas receive my admiration, as our government finds it hard to agree on anything. Johnson declares the great unrecognized sin of our LDS subculture is that we do nothing or selfishly cling to one’s wealth while others suffer, and do so seeking protection under the flag of capitalism.

When is the government helping too much? Johnson cites economists who say that suffering and deprivation is a useful motivator for people to try harder. Many people say that such systems would not provide sufficient motivation for people to work. In the Christian picture of things, are we to judge what people do with our charitable gifts? Some argue that they don’t want to be an enabler to addiction or continued demotivation to work ethic. Whether it be a man with a sign at a street corner, or a single mother at the welfare office, the argument remains the same. I don’t think that people realize that welfare checks are written out to families on the basis of the needs of the children. How can we refuse to give aid to poor children despite what we might believe of their parents (considering the stigmas among Johnson’s students that poor people are poor because they’re lazy, or they’ve earned their position in life and deserve poverty)? I don’t see how we can judge others for their financial situation, seeing that most people’s wealth and socioeconomic status derives from having the right parents, the right genes or being at the right place at the right time. Don’t we believe as Christians, that people deserve more chances? Isn’t the Lord standing with his hand “stretched out still?” (Isaiah 5:25) If people mess up have they truly earned their situation, or do we as Christians believe that they deserve another shot at life? I think we know the answer. Further, I believe that we cannot judge others for not taking the same path we have chosen to follow when secondary education is as viable an option to poor children as earning a million dollars is to the middle class.

Wealth seems to be more situational than earned most times. We may not see ourselves as wealthy from our own situation, but what is ‘wealthy’ anyways? Johnson suggests that today’s ‘modest’ living could easily be defined as a ‘high’ level of comfort and convenience, whereas in times past such circumstances were only available to the upper class. Most people will put themselves into the category of ‘middle class,’ however I think the upper class not a static level, just the next one someone wants to reach. Johnson believes that wealth, materialism and self-indulgent consumption stand at odds with contemplation of Christian morality. Isn’t this what we do when we try to accumulate more and more wealth? The question is really is it morally acceptable to let the rich get richer while the poor get poorer (something that is really happening, not just said in rhetoric, mind you)? Thomas Jefferson is quoted in the paper to have said that if people forgot themselves “in the sole faculty of making money,” the future of the republic would become bleak. I think the Lord would make a similar bleak prediction for one’s spiritual standing. In the story of the widow’s mite we learn that the Lord’s judgment over the use of money is based not on how much we give away, but on how much we keep for ourselves.

Wednesday, May 21, 2008

The Last Action Hero's Big Gamble


Okay, so I'm the coach of a baseball team that is spending a lot of time in the basement. We have an extremely large fan base who put a lot of money into our mismanaged bureaucratic organization. Because of this erroneous financial management we needed to save some money and cut funding to all parts of the system. The most important organization affected by this is the farm system. This has been a major problem and has left our team struggling to find and develop young talent on our own. In short, every team from A-ball to the pros sucks.

Obviously a cut would only extend our slump, so the owner of the franchise decided to bring more funding into the team by using revenue from his sub par Las Vegas casino.

It would still be too much of a cut, but the owner has projected that more people will go to his casino with more aggressive marketing, raising its revenue.

Do I feel comfortable about this? Don't bet on it. Is it real? No, of course not; baseball is much too competitive for risks like that. But Arnold Schwarzenegger doesn't think it's too risky for California's feeble education system. In his newly proposed budget for the Golden State, the Kindergarten Cop put the handcuffs on funding for students of all ages. But don't worry, we will fund it with more revenue from the state lottery.
(The following is a monologue from the Governator)
Oh, I know da projection is big. We will market the lottery more aggressively and add more fun scratcher games no one can win. You don't believe me?!?! Get Down! More budget cuts coming! Don't believe me? Grab my hand! Follow me into a dependency on the vices of human nature to support the education of young minds? Come on! Get in da chopper! (This is the part where you look at the flaming helicopter with only two and a half rotors left, shake your head and move to Idaho)