Diary

Loaves and Fishes Economics

If you ever want to see the Progressive thought process reach the wall that divides us, there is a simple formula.  Posit that a man is worth fifty million dollars, or any amount large enough to gain attention.  Then ask what that man’s income tax burden necessarily is.  A Progressive/Liberal/Democrat will claim it depends upon tax rates and any other number of factors, thus the question cannot be answered.  This of course is not the case.

Because that man’s income tax rate is zero.  We do not tax for simply possessing money; we tax for using money to create profit.  (The fact that this to whatever degree discourages and even demonizes profit is a good argument for another day.)  The Progressive thought process reaches its end before approaching the reality of where taxable income originates.  The man in question would have to not just invest his money, but invest his money successfully: he would need discover a viable, noteworthy venture, and one within an environment where conditions were conducive to earning.  But if nothing is earned, there is nothing to tax. This is why Government revenues eventually fall under conditions of higher taxation, because higher taxation discourages the very profit which is used to fund the taxation.  It is a self-defeating proposition, and one that if clearly and succinctly broached in a public forum by any intelligent individual, might well end the careers of any number of palpable frauds, as they would be forced to defend an indefensible position: the loaves and fishes school of economics.

Jimmy Carter, who until recently has been generally acknowledged as the worst President of the modern era, at least recognized that money had to be generated before there could be anything to tax.  He thus allowed interest rates to skyrocket, and taxed the profits generated at absurd rates.  But people immediately realized what was taking place, and Ayn Rand’s “Galt’s Gulch” metaphor quickly became a reality.  If people who earn and create money are not allowed to keep a reasonable portion of what is their own, they will simply cease to earn or create it until conditions return to where they can.  Carter and those around him stopped thinking before that inevitable conclusion was reached, and essentially assumed that people would go on working for the Government as opposed to themselves, possibly out of some some twisted, borderline aristocratic notion of patriotism.  One where the Government is the King, and the King embodies the nation.

But Barrack Obama has managed to lower the bar set by Carter, a thought most people would have found incomprehensible just a few years ago.  For the first time in American history, the Government has done all it can to discourage any sort of profit on the part of any segment of society.  Our economy has come to  a near-dead stop, because the Democratic Congress and our Democratic President have combined to create an environment where there is no incentive for anyone to do anything, short of survival.  The Left’s historic disdain for the Middle Class is in full effect, as no segment of our society has been hit harder than the small business owner.  The Elitists have their foot on the throat of the bourgeois like never before in American history, and show no signs of offering mercy. They can’t even get Corruption right, as the companies involved with the Cap and Trade scam are quickly realizing the incompetence of our current leaders, and are beginning to distance themselves.  The line between Conservatives and Progressives has never been clearer, or disparate priorities more clearly on display.  Progressives believe Government is the answer to every problem.   They will never understand where the funding for their empty dream actually originates, because to understand the simplest realities of taxation is to negate the possibility of Government achieving the size and puissance they so obviously and ardently desire.  The thing would eventually essentially consume itself, were they allowed to have their way for enough time.

These years and this Administration will only underscore what should have long ago been evident. Socialism is a failed, unsustainable economic experiment that has done more damage in its various incarnations (Communism and Fascism being its other faces) than any other idea of the last 1000 years.  The millions who were murdered under Mao, Stalin and Hitler were killed in pursuit of a variant of the same empty possibility our current Government is desperately seeking to force upon us all.  The unsupportable historical untruth that the Nazis had anything whatsoever to do with the Right as opposed to the Left is easily dismantled with even a cursory scan of Hitler’s economic policies: whose do they more closely resemble?  Ronald Reagan’s, or Barrack Obama’s?   And let it be noted for all time that the most incompetent, ineffectual and unaccomplished Administration in American history –– an Administration incapable of simply passing a Budget –– was also the one that most tried to distance our nation from the simple realities of Free Market Capitalism.  Capitalism is no more a theory than Gravity is a theory.  It is rather an acknowledgement of mathematical realities as applied to human nature.  And in two months, we seem poised to take a giant stride back to ground we never should have abandoned.  Progress, by definition, should be a step forward, not just towards something new, but towards the achievement of something better.  And if this fact is ignored, the only rational choice is to return to the state of affairs where things were better.  Thus a move “backwards” can be better, and in no way necessarily “reactionary”. Because where “Progress” implies improvement, what is “Reactionary” implies decline. Thus “Progressivism” is shown in fact to embody the opposite of its own appellation, an attempt to reinvent a failed ideology of the past.

They see themselves as visionaries, never realizing they look backwards, and toward a wasteland.