It is still a very easy to follow model that illustrates how you can get in trouble (doing what Obama is doing) and why we shouldn’t be Heading down this path…
The Village Story:
Let’s say you live in a village. The village is a wonderful place to be. Good school, great views, good tasting water, fertile soil. Just a great place to raise your children. In the village there are blacksmith shops, bakeries, seamstresses and many other little shops. All of these run by other villagers. Over time the village grows and there are some changes. The village now has a Mayor and a sheriff. There is a street sweeper for Main Street. There is a a Fire House, a Church and even an “Old Folks Home”. The Little Village has grown!
The Mayor initially worked for free, served his village because he wanted to help. The Firemen were volunteers & the Church was built with donations. However now that the village has grown, the Mayor needs help, he needs a secretary. The Fire House needs new hoses. There aren’t enough volunteers at the “Old Folks Home”. The answer comes in the form of taxes. All the little shop owners pay a little bit of what they make to keep the services working & life in the village continues. However the taxes are soon not enough to cover the costs. The mayor’s Secretary needs an assistant. The Fireman need another wagon for the far side of the village. Due to skirmishes with other villages & disease there are now orphans in the village and they need help. The only answer seems to be to ask the shop keepers to pay more of their sales into the village tax fund; at least that is the only answer the new Deputy Mayor can come up with!
You see the problem. The village went from self-sufficiency to Government Dependant. Where in the beginning everyone in the village produced a good or service, now there are those that do not, either because they can’t or they simply choose not to. The problem is that the circle of money in the village hasn’t enlarged. The money that was in the village is still there, but no outside money comes in to pay for the costs of those that do not produce anything. The shop keepers are depending upon the money in circulation to run their businesses; but the taxes make that difficult if not impossible to do.
The village is suffering from a lack of “Primary” industry! There are no shops or businesses that sell their goods or services to other villages so as to bring more money into the village from the outside. You see if you want to have a society where some do not produce, you must have money enter the system from outside the circle to help pay for those inside that do not produce.
A baker, unless they are the most skilled & gifted baker will not help, other villages have bakers. The blacksmith will not help most villages have their own blacksmith or the farmer shoes their own horses. No these business & shop owners are part of the villages “Secondary” industry or service economy & they survive upon the cash in circulation within the village.
The Mayor & Deputy Mayor and all Government service people within the village do work, but they do not add money into the village’s economy. The contrary is true they use up a good deal of the money without producing a product.
Not all villages have this problem. There is a neighboring village to the North; they have a thriving economy. It seems they have learned how to build very solid “Fire Wagons” and they have been selling them to all the other neighboring villages. The maker of the “Fire Wagons” has hired three men to help build the wagons, he pays them wages for working. He also has hired women that help make the signs that adorn the Fire wagons that they sell. The women earn wages too! All of these people that work in the “Fire Wagon” shop spend their money in their village’s shops and in this village the taxes are very low.
It would seem that adding a Deputy Mayor, or a new Sheriff does little for the economy. The Government job isn’t the answer. It would seem that the only answer is to have a product or service that someone outside the village will pay for, thereby bringing money into the village.
Some villages to the South do well also. They seem to do well because they are located on the “Big Lake”. It seems many travelers visit the village by the “Big Lake”. They fish, and swim and paddle their canoes; all the while spending their money in the village on the lake.
This won’t help the first village, they have no “Big Lake”. The land cannot be moved, so unless you have something that others wish to visit you don’t attract visitors and their money.
There are only two choices for the first village. They must close the “Old Folk’s Home”, fire the Mayor and his staff and go back to growing their own food; or they must begin to build something that other people in other villages will be willing to pay for. Those are the only two choices. Further the first must either build something so unique that no other village can supply it, or they must build something useful and be able to sell it for less than others sell it for. They must either innovate or become very efficient.
It has always been this way…
America must produce and produce competitively. Government “Make Work” programs like the Obama Administration are promoting will not work. We must either innovate or invent the new. Or we must become more efficient at producing the current. These are the only choices.
We have been discussing the Economy, the EPA, Obama’s Health Care and more on Wed.’s between 3 and 4 pm EST. On Simon Sez (my radio show). Call in 1 866 826-1340 and be Heard (not Herd). Listen to the show live (and previous shows) Here!
Like reading this post? Buy me a cup of coffee :)Tags: Flawed thinking, keynesian economic theory, Obama, Obamanomics
Lord knows the Left tortured “GW” for 8 years. These are Cartoons for Conservatives. Nothing more, nothing less. I hope they make you chuckle. Given the unemployment, foreign policy, pending health care, future Cap & Trade Legislation and who the heck knows what else is coming; a chuckle isn’t a bad idea…
Like reading this post? Buy me a cup of coffee :)Tags: Obama, Obama Cartoons
Last November, a reporter asked House Speaker Nancy Pelosi if it was constitutional for Congress to require Americans to buy health insurance. Ms. Pelosi responded, “Are you serious?”
On Monday, U.S. District Judge Henry Hudson got serious. He denied Health and Human Services Secretary Kathleen Sebelius’s motion to dismiss a lawsuit brought by the state of Virginia challenging the new health law. His ruling stated that it is far from certain Congress has the authority to compel Americans to buy insurance and penalize those who don’t.
Judge Hudson’s ruling paved the way for a trial to begin on October 18, with possible appeals all the way to the Supreme Court, a lengthy process. Some states will likely delay creating insurance exchanges and slow down other costly preparations for ObamaCare until its constitutionality is determined by this case.
[quote] Both the Centers for Medicare and Medicaid Services and the Congressional Budget Office have said that the Obama administration cannot claim that the Medicare cuts they are enacting will simultaneously finance the new health care law, which is supposed to cover 30 million uninsured, and extend the solvency of the existing Medicare program.But that hasn’t stopped the administration from continuing to make both claims anyway. And when I asked about this on a Monday conference call held to tout Medicare savings, Health and Human Services Secretary Kathleen Sebelius dismissed the conclusion of the CMS actuary, and falsely claimed that the CBO had taken a different view. [snip]Her statement that the CBO had taken a different view on this is demonstrably false. On several occasions, the CBO has determined that you can’t double-count Medicare savings.In a March letter to Paul Ryan, the CBO wrote that a majority of the Medicare savings from the health care law “would be used to pay for other spending and therefore would not enhance the ability of the government to pay for future Medicare benefits.”Last December, in a letter to Sen. Jeff Sessions, the CBO explained this in further detail. That letter concluded that: “To describe the full amount of (Medicare hospital insurance) trust fund savings as both improving the government’s ability to pay future Medicare benefits and financing new spending outside of Medicare would essentially double-count a large share of those savings and thus overstate the improvement in the government’s fiscal position.”
Economist and cheerleader Paul Krugman is ever so excited about the projected cost savings in the new report:In other words, the Medicare actuaries believe that the cost-saving provisions in the Obama health reform will make a huge difference to the long-run budget outlook. Yes, it’s just a projection, and debatable like all projections. And it’s still not enough. But anyone who both claims to be worried about the long-run deficit and was opposed to health reform has some explaining to do.Opponents of ObamaCare have some explaining to do? All they need to do is cite the actuary’s opinion, found at the end of the Trustees report. The comedy gold (my emphasis):…the financial projections shown in this report for Medicare do not represent a reasonable expectation for actual program operations in either the short range (as a result of the unsustainable reductions in physician payment rates) or the long range (because of the strong likelihood that the statutory reductions in price updates for most categories of Medicare provider services will not be viable).To rephrase the Excited Prof slightly, in other words, the Medicare actuaries don’t believe that the cost-saving provisions in the Obama health reform will make a huge difference to the long-run budget outlook.
Mary Katherine Ham and Guy Benson have a guest post at HotAir setting forth 10 key false promises by Barack Obama, Harry Reid, Nancy Pelosi and other Democrats about Obamacare, ObamaCare: The sum of all fears. The post is long, but worth the read.Here are the 10 false promises:
- Promise #1: If you are satisfied with your existing health care arrangement, you can keep it.
- Promise #2: Reform will lower America’s health care spending.
- Promise #3: Reform will lower Americans’ health care premiums.
- Promise #4: Obamacare will not lead to a doctor shortage, or escalate the primary-care physician shortfall.
- Promise #5: There will be no government rationing of medical care.
- Promise #6: “The firm pledge” – Ninety-five percent of Americans will not see any form of tax increase because of Obamacare (or anything else).
- Promise #7: Health care reform won’t add “a single dime” to the deficit-and will actually cut it.
- Promise #8: Health care reform will help businesses-employers and employees, alike.
- Promise #9: Obamacare will not allow for funding of abortions with taxpayer money.
Promise #10: Obamacare will not only satisfy each of the promises above, but satisfy all of them at the same time with virtually no downsides.
Official election returns show that citizens of the Show Me State voted overwhelmingly–71% to 29% in favor of Proposition C, a ballot measure described in a pre-election report from Time magazine:Meanwhile, Time reports that other states will have ObamaCare opt-out measures on the ballot in November. If yesterday’s results in Missouri are any indication, Nov. 2 could be a long night for congressional Democrats–and for the White House.
Michael Tanner writes in NRO:
[T]he results may be even more devastating for the Democrats than initially thought.According to preliminary results, just under 668,000 Missourians voted in favor of Proposition C. Only 578,000 Republicans voted in their party’s primaries. Another 40,000 voters appear to have cast votes on Proposition C without voting in either the Republican or Democratic primaries. So, even if you assume that every single Republican voted for the initiative and every person who didn’t vote in a primary voted for it, at least 40,000 Democrats — more than one in every eight Democratic primary voters — voted against the centerpiece of President Obama’s health-care plan. And these aren’t just any registered Democrats; these are the party activists, the Democratic base.Do we need any more evidence of how unpopular this bill is?
William Yeatman has a good, brief rundown of the environmental law at issue here and what the EPA is trying to do here:In a nutshell, the administration wants to pick and choose which sections of the Clean Air Act apply to greenhouse gases, but that’s not how the legislation works. In fact, the Clean Air Act is written such that one provision tripwires another, which tripwires another, and so on and so forth, until the whole Act applies. When the Congress created this of belt-and-suspenders approach to regulation, in the 1970s, it was trying to limit particulate pollution that causes smog. Greenhouse gases, however, are emitted in much greater quantities than particulate pollution. As a result, the Clean Air Act, if applied literally to greenhouse gases, would result in the regulation of every mansion, apartment building, and office complex. That is, it would be a regulatory nightmare. To avoid having to regulate the entire economy, the EPA wants to rewrite the Clean Air Act. Of course, this is legally dubious — the executive is not allowed to play the role of the legislature.This administration has been using the EPA as a threat to try and scare the Senate into voting for job killing climate legislation; however, that effort has now failed and they are left with trying to use the EPA to make good on their threats. This is the opening salvo in that war. I believe the dems have vastly overestimated the ability of the EPA to achieve their ends, because the biggest problem is that *everything* the EPA does is going to reduce manufacturing jobs in the affected areas! Imagine how it will play for the Feds to be actively killing jobs while unemployment is still near 10%!!!The new Congress is not going to be nearly as sympathetic to Ms. Jackson’s efforts as this one has been, and they will have a very effective tool — they don’t need to pass anything that could get vetoed, they just need to slash funding for the EPA by 75% and see how long it takes to get their attention. A Republican house may not be strong enough to dictate specific policy changes, but in a deficit obsessed, budget cutting world they can play hell with the EPA’s day to day operations.I think we’re about to see a 2 year long civil war in which various parts of the government do everything they can to sabotage and undermine other parts, depending on who controls the respective power centers. Some would say that’s been going on for some time already, but those have just been skirmishes – this conflict is about to break wide open. Lord help us all, we’re in for one hell of a mess.
It’s unlikely that the preachments now directed at opponents of the project by Mayor Bloomberg and others will persuade that opposition. Those fighting the building recognize full well the deliberate obtuseness of Mr. Bloomberg’s exhortations, and those of Mr. Cuomo and others: the resort to pious battle cries, the claim that antagonists of the plan stand against religious freedom. They note, especially, the refusal to confront the obvious question posed by this proposed center towering over the ruins of 9/11.It is a question most ordinary Americans, as usual, have no trouble defining. Namely, how is it that the planners, who have presented this effort as a grand design for the advancement of healing and interfaith understanding, have refused all consideration of the impact such a center will have near Ground Zero? Why have they insisted, despite intense resistance, on making the center an assertive presence in this place of haunted memory? It is an insistence that calls to mind the Flying Imams, whose ostentatious prayers — apparently designed to call attention to themselves on a U.S. Airways flight to Phoenix in November 2006 — ended in a lawsuit. The imams sued. The airlines paid. [snip]The center may be built where planned. But it will not go easy or without consequence to the politicians intent on jamming the project down the public throat, in the name of citizens who have come to know pure demagoguery when they hear it. They have had, of late, plenty of practice.
Undocumented Imam’s Refusal to Perform Interracial Gay Handicapped Wedding Leads to Charges of RacismNEW YORK – Charges of racism, sexism, and religious discrimination filled the air this afternoon outside the just-completed Cordoba House, the gleaming new $100 million 15 story mosque and Islamic cultural center near the ruins of New York’s World Trade Center, following a tense 5-hour standoff prompted by the mosque’s refusal to host a wedding between a lesbian African-American woman and her blind white transgendered partner.Over 200 NYPD officers and multicultural crisis counselors were bused to the site to quell the simmering 17-way tensions between Muslim, Black, LGBT, immigrant, disabled, and lawsuit community activists. The scene was punctuated by outbursts of pushing and shoving, including a brief confused intramural scuffle among members of Reverend Louis Farrakan’s Nation of Islam, but the only serious injuries reported was a hernia suffered by a legal aide distributing plaintiff’s briefs. The incident resulted in one arrest, a 7-year old girl who was seen operating a lemonade stand without a permit.
Tags: Obama
In my opinion Obama is about to reveal (of course in order to see you have to have your eyes open) that in his “Grand Plan” you use everyone and everything to get what you want.
I am speaking (in this post) of the end of the Big Labor/ Obama Love Affair. SEIU, UAW all them are about to find out this man, Obama, will use you and throw you under the bus in an instant.
If you haven’t figured out by now where I’m going in this piece you must have been living in a cave the last 19 months. Obama has been riding the Labor Band Wagon since the beginning. He has bailed the UAW folk out (albeit they are not out of danger as evidenced by their offering, the Chevy Volt!). He has broken bread (and legs) with SEIU, at least that is how any sane person should see his sickening relationship with Stearn’s bunch of thugs. In fact Obama has used the unions for everything from muscle to money; from vocal support to mobile protest teams.
Well the “Used” are about to be “Abused”, IMO. How you ask? Simple, Obama is going to grant “Amnesty to 20 to 30 million illegals, and he’s going to keep the border open the whole time he does it (so as to attract millions more).
It’s not a rant! The memos are being leaked around DC as I write this. Obama plans to circumvent Congress (like he needs to avoid that pack of mindless self-serving lemmings) and grant an “Executive”based amnesty.
Can you imagine what this will do to the ability of union members to get work?
You think you have seen low wages and unemployment so far; you ain’t seen nothing yet!
You cannot stop human nature. The granting of legitimacy to millions of illegals will produce a “Dumping” of millions of legal workers in favor of the new crop of labor. Millions more will invade our land through the completely porous border and the Union Supporters of Obama will find that their support was betrayed for additional votes.
Wholesale Amnesty & open borders are positions that are completely counter to the interests of any American worker (union or not); but the jackasses that support Obama have not deduced this as of this date. They soon will…
Understand Obama sees only his immediate need; he needs twenty million votes to replace the votes of Americans he has totally ignored and disrespected. he sees open borders & amnesty as his only way to continue his reign.
I am disgusted by his actions…
Like reading this post? Buy me a cup of coffee :)Tags: amnesty, Illegals, Obama, open border, Unions, unions are about to get it
A few of the recent posts/Grumbles on Grumbler.net:
I created grumbler.net after Twitter (IMO) without cause shut down my account without notice. I had over 61,000 people following me on Twitter. My account became the subject of multiple assaults by Liberals (organized?) that reside on Twitter for the singular purpose of baiting and assaulting those with conservative views.
I believe that communication between those that wish to see our Country excel again is key to it being able to do so. Those that love America will be welcome at Grumbler.net
Like reading this post? Buy me a cup of coffee :)Tags: #TCOT, grumbler.net, Twitter is Leftist