The crisis in Ukraine and elsewhere will put foreign policy at the forefront of the 2016 presidential election, Jerry Seib says on the News Hub. Photo: Getty Images.
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U.S. House Minority Leader Nancy Pelosi speaks to the press after meeting with U.S. President Barack Obama at the White House in Washington, April 1, 2014.
Credit: Reuters/Larry Downing
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Democrat Sponsored "Income Inequality"; Law of Bad Ideas, Yet Again
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioD2VJMoBfavWelVXlhWcs564Lta2F1qUO3D4nl0PkOaGFGLZrHxOZ57pXFDIVb0twyXXvr511wgl4HsGLj0eClDvqk8EiqA9kPUQti6rRGqZpYxMW_yA-3z73Yic5j8BGtP0N_rytKaI/s1600/San+Jose+Pensions.png
Debate rages over “income inequality”.
CEOs makes hundreds or thousands of times more than workers. That is one aspect of income inequality. And it’s easily explained: The Fed’s inflation policies, bank bailouts, Fractional Reserve Lending, and crony capitalism are to blame.
That blame is nonpartisan.
Rather than attack the problem, “progressive” partisans howl over minimum wages.
Democrat-Sponsored Income Inequality
There is one major aspect of “income inequality” that you never hear president Obama or the Democrats mention, precisely because they are to blame.
Democrat-sponsored “income inequality” is even more insidious because it directly affects middle-class American who pay high taxes so public employees can retire in comfort with gold-plated guaranteed-for-life pensions.
Gold-Plated Retirements
In support of my above thesis, please consider In San Jose, Generous Pensions for City Workers Come at Expense of Nearly All Else.
Here in the wealthy heart of Silicon Valley, the roads are pocked with potholes, the libraries are closed three days a week and a slew of city recreation centers have been handed over to nonprofit groups. Taxes have gone up even as city services are in decline, and Mayor Chuck Reed is worried.The source of Reed’s troubles: gold-plated pensions that guarantee retired city workers as much as 90 percent of their former salaries. Retirement costs are eating up nearly a quarter of the city’s budget, forcing Reed (D) to skimp on everything else.
Employee costs are growing nearly five times faster than revenues leading to fewer workers and budget deficits.
“This is one of the dichotomies of California: I am cutting services to my low- and moderate-income people . . . to pay really generous benefits for public employees who make a good living and have an even better retirement,” he said in an interview in his office overlooking downtown.
In San Jose and across the nation, state and local officials are increasingly confronting a vision of startling injustice: Poor and middle-class taxpayers — who often have no retirement savings — are paying higher taxes so public employees can retire in relative comfort.
“I got sick and tired of cutting services to my people — 10 years of services cuts — in order to balance the budget,” Reed said. “We got to the point where we were facing service delivery insolvency.”
In California, cities large and small are struggling to pay the growing public-sector retirement tab. Meanwhile, 55 percent of the state’s private-sector workforce — 6.3 million — have no retirement plan on the job.
Other governments are also struggling. In Chicago, Mayor Rahm Emanuel (D) has been pushing to scale back pensions for city workers, warning that without reform, city services will wither. Rhode Island enacted pension reforms in 2011 that trimmed retirement benefits for new workers and for those already on the payroll.
Enter the Law of Bad Ideas
Instead of admitting the system is hopelessly broken, Sacramento lawmakers want to create the nation’s first retirement savings plan for private-sector workers in which the state manages the money and guarantees a minimum rate of return.
Both cities and the State of California are struggling to pay pensions, yet the proposed solution by California lawmakers is to have the state guarantee even more pensions.
Worst yet, this guarantee would come when treasury yields are in the gutter and stocks 50% overvalued and poised for losses in any time period shorter than seven years according to John Hussman (and I happen to agree). For details, please see It Is Informed Optimism To Wait For The Rain
Note: John Hussman is one of many great speakers at Wine Country Conference II. If you haven’t yet signed up, please do.
For such ideas to be proposed at the worst time is mind-boggling, yet strictly in accordance with “The Law of Bad Ideas“.
A number of corollaries clearly apply.
Corollary Three: Those in positions of political power not only have the worst ideas, they also have the means to see those ideas are implemented.
Corollary Four: The worse the idea, the more likely it is to be embraced by academia and political opportunists.
Corollary Five: No politically acceptable idea is so bad it cannot be made worse.
The reason CEOs make out like bandits is explained in Monetarism, Abenomics, QE, and Minimum Wage Proposals: One Bad Idea Leads to Another, and Another
Brief History
Because of one idiotic notion, that “falling prices are a bad thing”, the Fed has generally managed to keep the CPI rising, with some prices rising much faster than others.
That leads to corollary number six, mentioned in the above link:
Law of Bad Ideas Corollary Six: Bad ideas lead to more bad ideas to fix problems caused by previous bad ideas.
And so here we are. To bail out the absurd idea that public pension promises are supportable, complete with 7.5 to 8.0 percent annual returns, when 10-year treasuries yield 2.67%, California proposes insuring private pensions as well.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Mish’s Global Economic Trend Analysis
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New Jersey Gov. Chris Christie (R) reiterates that he had “no knowledge” of the lane closures that were used as political payback against the mayor of Fort Lee last September.
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As Obama discussed his service and severe injuries, Army Sgt. 1st Class Cory Rembsurg beamed from the first lady’s box.
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Will Tracy, editor in chief of The Onion, sits down with Chris Cillizza to discuss how his writers craft satire and what he thinks of some prominent politicians.
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Democratic Rep. Bill Owens of New York will not run for reelection in November, he announced Tuesday — dealing another blow to the party’s prospects of winning control of the House.
In the past two months, three Democrats — Owens, Utah Rep. Jim Matheson, and North Carolina Rep. Mike McIntyre — have announced their retirements from seats that could swing to Republicans. The GOP is trying to protect a 17-seat advantage in the House.
Four Republicans — Pennsylvania Rep. Jim Gerlach, Iowa Rep. Tom Latham, Virginia Rep. Frank Wolf, and New Jersey Rep. Jon Runyan — are retiring from seats that Democrats are aggressively competing for.
(PHOTOS: Who’s leaving Congress?)
Owens’s swing district, which encompasses a swath of upstate New York, broke for President Barack Obama in the past two elections. But Republicans are bullish about their prospects for winning the 21st district in 2014, especially with Owens — who cut a moderate profile — no longer seeking reelection. Republican Elise Stefanik, a former George W. Bush aide, has launched a campaign for the seat.
Owens said in a statement: “After careful thought and consideration, I have decided not to seek re-election for the 21st Congressional District this November. I have enjoyed the opportunity to travel the district, meeting and serving the families and business owners of this vast community. It has truly been a privilege to serve, and I plan on continuing to work for a brighter future for the region.”
The congressman is serving his second full term, after winning a special election in November 2009. Owens narrowly won a three-way race in 2010 against Republican Matt Doheny and Doug Hoffman.
Owens’s short tenure in the House hasn’t been without controversy. In December 2011, Owens took a trip to Taiwan organized by a lobbying firm, but paid for by the Chinese Culture University. House Ethics rules dictate that travel expenses “may only be accepted from an entity or entities that have a significant role in organizing and conducting a trip.”
Anna Palmer contributed to this report.
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(Newser) – Virginia has declared a winner in the state’s tightest election ever: Democrat Mark Herring has been certified as the next state attorney general. But the fight may not be over: The Washington Post expects a recount. More than 2 million voted in the election, but Herring beat fellow state senator Mark Obenshain by just 165 votes. Despite a unanimous vote by the state Board of Elections to certify Herring the winner, the board’s chair said he was “concerned about the integrity of the data.” Success for Herring, the Post notes, would give Democrats all three statewide office wins.
After Senate Majority Leader Harry Reid proposed a change, the Senate struck down traditional filibuster rules for most presidential nominations.
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After Senate Majority Leader Harry Reid proposed a change, the Senate struck down traditional filibuster rules for most presidential nominations.
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Senate Minority Leader Mitch McConnell accused Senate Majority Leader Harry Reid Thursday of “trying to change the subject” with a proposed rule change.
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ORLANDO, Fla. (AP) — Charlie Crist had barely entered the room before a throng of teachers swarmed him.
The union delegates – and stalwart Democrats – wanted autographs, pictures, hugs and even kisses from the former Republican governor.
“We love you, Charlie!” a woman shouted, locking arms with Crist as someone snapped a picture.
“I love you all,” he told those gathered at the Florida Education Association’s annual convention this month.
Nearly three years after losing a U.S. Senate campaign to Republican Marco Rubio and leaving the governor’s mansion, Crist is plotting a political comeback that seems fantastical even by Florida’s stranger-than-fiction standards.
The man who once identified himself as a Ronald Reagan Republican is preparing for another gubernatorial bid, this time as a Barack Obama Democrat.
As he travels the nation’s largest swing-voting state, Crist is emphasizing the bipartisanship and consensus-building that marked his sole term as governor. Most early polls show him leading the unpopular incumbent, Republican Gov. Rick Scott, a former hospital company executive elected with tea party support in 2010.
Democratic officials, looking for a candidate to lead them back to power in Florida after 15 years, have embraced the convert.
In an era of political polarization, Democratic leaders see his pragmatic governing record as a national model for a party trying to claim the political center and solidify gains among the country’s fast-growing bloc of independent voters.
A statewide victory also would give Florida Democrats an organizational edge in the 2016 presidential election.
“The shutdown and the fiasco in Washington have made that style of bring-everybody-together government much more popular,” said Ed Rendell, the former Democratic governor of Pennsylvania and ex-chairman of the National Governors Association. “Charlie’s going to ride a wave.”
According to a Gallup poll this month, nearly half of Americans now identify themselves as independent, an all-time high. A separate survey found that a record 60 percent of Americans are so dissatisfied with the way Democrats and Republicans are governing the country that they favor the creation of a third major party.
Crist, who calls himself “the people’s governor,” might be able to capitalize on that disenchantment – if voters are willing to overlook his history of conflicting positions in key areas.
His reputation as a moderate governor stemmed in part from his willingness to break with the GOP on major issues. He vetoed legislation that would have required ultrasounds before abortions, killed a bill that would have instituted merit pay for teachers and supported the restoration of voting rights for ex-felons. Scott has since signed ultrasound and merit-pay bills and reversed Crist’s voting rights effort.
Crist calls “bringing a new tone to Tallahassee of bipartisanship” his proudest achievement.
“People are so fed up with the partisan rancor that we are experiencing on a national level,” Crist recently told The Associated Press. “I would compare it to children in a schoolyard, but that would be insulting to the children in the schoolyard.”
The messy primary fight with Rubio in the 2010 Senate race has made him far from the perfect Democratic messenger. He spent much of that race campaigning as a pro-gun, anti-abortion, small-government Republican, saying it would be hard to find anyone more conservative.
When GOP activists and donors rallied around Rubio, Crist mounted an independent bid.
After the loss, he began backing Democrats in state and federal races and campaigned for Obama in last year’s election.
“I feel at home, truly,” Crist said recently.
Republicans have not forgotten – or forgiven – Crist’s defection.
Scott, who spent more than $ 70 million of his own money on his 2010 campaign, already has raised nearly $ 18.5 million from donors, promising a withering ad blitz against his opponent early next year. Signaling what’s to come, the state party has started painting Crist as a political chameleon “unfit to govern.”
Some Democrats also are suspicious and are favoring candidate Nan Rich, a former state Senate minority leader. Rich has questioned Crist’s Democratic credentials but has had trouble raising money for a statewide campaign.
Crist surprised many Democrats this year when he declared his support for gay marriage. In 2006, he backed a constitutional amendment banning same-sex marriage in Florida, a position he reaffirmed in 2008 and in 2010.
Crist said Obama’s support for gay marriage last year prompted him to change his mind.
Democratic leaders, who have spent much of the last decade on the sidelines of a GOP-dominated Legislature, are excited by the prospect of nominating Crist.
Lawton Chiles was the last Democrat elected governor, in 1994.
ORLANDO, Fla. (AP) — Charlie Crist had barely entered the room before a throng of teachers swarmed him.
The union delegates – and stalwart Democrats – wanted autographs, pictures, hugs and even kisses from the former Republican governor.
“We love you, Charlie!” a woman shouted, locking arms with Crist as someone snapped a picture.
“I love you all,” he told those gathered at the Florida Education Association’s annual convention this month.
Nearly three years after losing a U.S. Senate campaign to Republican Marco Rubio and leaving the governor’s mansion, Crist is plotting a political comeback that seems fantastical even by Florida’s stranger-than-fiction standards.
The man who once identified himself as a Ronald Reagan Republican is preparing for another gubernatorial bid, this time as a Barack Obama Democrat.
As he travels the nation’s largest swing-voting state, Crist is emphasizing the bipartisanship and consensus-building that marked his sole term as governor. Most early polls show him leading the unpopular incumbent, Republican Gov. Rick Scott, a former hospital company executive elected with tea party support in 2010.
Democratic officials, looking for a candidate to lead them back to power in Florida after 15 years, have embraced the convert.
In an era of political polarization, Democratic leaders see his pragmatic governing record as a national model for a party trying to claim the political center and solidify gains among the country’s fast-growing bloc of independent voters.
A statewide victory also would give Florida Democrats an organizational edge in the 2016 presidential election.
“The shutdown and the fiasco in Washington have made that style of bring-everybody-together government much more popular,” said Ed Rendell, the former Democratic governor of Pennsylvania and ex-chairman of the National Governors Association. “Charlie’s going to ride a wave.”
According to a Gallup poll this month, nearly half of Americans now identify themselves as independent, an all-time high. A separate survey found that a record 60 percent of Americans are so dissatisfied with the way Democrats and Republicans are governing the country that they favor the creation of a third major party.
Crist, who calls himself “the people’s governor,” might be able to capitalize on that disenchantment – if voters are willing to overlook his history of conflicting positions in key areas.
His reputation as a moderate governor stemmed in part from his willingness to break with the GOP on major issues. He vetoed legislation that would have required ultrasounds before abortions, killed a bill that would have instituted merit pay for teachers and supported the restoration of voting rights for ex-felons. Scott has since signed ultrasound and merit-pay bills and reversed Crist’s voting rights effort.
Crist calls “bringing a new tone to Tallahassee of bipartisanship” his proudest achievement.
“People are so fed up with the partisan rancor that we are experiencing on a national level,” Crist recently told The Associated Press. “I would compare it to children in a schoolyard, but that would be insulting to the children in the schoolyard.”
The messy primary fight with Rubio in the 2010 Senate race has made him far from the perfect Democratic messenger. He spent much of that race campaigning as a pro-gun, anti-abortion, small-government Republican, saying it would be hard to find anyone more conservative.
When GOP activists and donors rallied around Rubio, Crist mounted an independent bid.
After the loss, he began backing Democrats in state and federal races and campaigned for Obama in last year’s election.
“I feel at home, truly,” Crist said recently.
Republicans have not forgotten – or forgiven – Crist’s defection.
Scott, who spent more than $ 70 million of his own money on his 2010 campaign, already has raised nearly $ 18.5 million from donors, promising a withering ad blitz against his opponent early next year. Signaling what’s to come, the state party has started painting Crist as a political chameleon “unfit to govern.”
Some Democrats also are suspicious and are favoring candidate Nan Rich, a former state Senate minority leader. Rich has questioned Crist’s Democratic credentials but has had trouble raising money for a statewide campaign.
Crist surprised many Democrats this year when he declared his support for gay marriage. In 2006, he backed a constitutional amendment banning same-sex marriage in Florida, a position he reaffirmed in 2008 and in 2010.
Crist said Obama’s support for gay marriage last year prompted him to change his mind.
Democratic leaders, who have spent much of the last decade on the sidelines of a GOP-dominated Legislature, are excited by the prospect of nominating Crist.
Lawton Chiles was the last Democrat elected governor, in 1994.
Does Candy Crowley work for CNN or the Democratic Party?
It was tough to tell Sunday when after the State of the Union host asked guest Rand Paul (R-Ky.) if recent polling indicated the beginning of the end of the Republican Party, she actually asked him if he’d ever consider becoming a Democrat (video follows with transcript and commentary):
During her conversation with Paul, Crowley predictably showed a recent NBC News/Wall Street Journal poll showing Republicans taking the brunt of the blame for the recent government shutdown.
“Do you think, as many have now started talking about, and I grant you a lot of them are Democrats, that there has been irreparable harm done to the Republican Party?” asked Crowley. “People talking about how this is the beginning of the end of the Republican Party as we know it.”
So now this CNN host is even admitting that she’s using Democrat talking points on a Republican guest.
Paul just laughed and said, “I think our demise is a little bit overstated. I would say that both parties are going to catch a lot of blame on this.”
Crowley pressed, “Do you agree that Republicans are taking a lot?”
“Well, I think both are,” responded Paul, “and I think Democrats who think this is a parlor game, who think this is fun, here’s what the Democrats think. They think we’ll send a bunch of government workers out there to close off the roadside viewing of Mt.Rushmore because that is funny. I don’t think it is funny, and I think that Democrats and Republicans are going to catch blame.”
Then came the money question from Crowley.
“Do you see yourself at any point in the future being anything other than politically a member of the Republican Party?”
Paul once again laughed and said, “You mean, you’re implying a third party or some other party?
“Or if you wanted to become a Democrat,” Crowley actually clarified. “There are lots of sort of parties out there. Just wonder if you see yourself being anything other than a Republican?”
Paul once again laughed and responded, “No. I’ve always been a Republican, and I’m one of those people who actually is a real lover of the history of the Republican Party from the days of abolition through the days of civil rights. Republican Party has a really rich history. In our state, I’m really proud of the fact that the ones who overturned Jim Crowe in Kentucky were Republicans fighting against an entirely unified Democrat Party. So I am proud to be Republican. I can’t imagine being anything else.”
Bravo, Senator.
As for Crowley, CNN really needs to consider putting a D next to her name whenever it appears on screen because her behavior lately indicates that at this stage of her career, she’s nothing but a Democratic shill.
Bill de Blasio speaks to supporters after taking a decisive lead in the Democratic primary for mayor of New York City. Plus, a wrap-up of speeches from his primary opponents Anthony Weiner, Christine Quinn and Bill Thompson and Republican primary winner Joe Lhota. Video: AP
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