Economy Would Collapse Right Now – Today’s Quote

The world economy would collapse right now if markets were truly free [of manipulation]…and gold and silver would [shoot the ] moon…

P.I.G., The Prepper Investment Guru

Fair Wage – A Newspeak Definition

Without the freedom to think, all other freedoms disappear.  This was the premise behind ‘Newspeak‘ in George Orwell’s classic book 1984.  Newspeak was a modification to the language so that ‘Big Brother’ could exert greater control over what and how people think.  By modifying the language, Big Brother hoped to eliminate ‘thoughtcrime’ and the desire for freedom.  While we are fortunate to live in a society ruled more by law than by man, there is a threat of tyranny in the redefinition, misuse and manipulation of the English language by our political class and their allies in the media that is essentially our own version of Newspeak.  Today we add another entry to our page, Newspeak – A Modern Political Dictionary.  This time we discuss the term “Fair Wage.”

Fair Wage:  Newspeak for an artificially created, centrally controlled wage floor (minimum wage) that fails to take into account the relative income and expenses generated from that labor.  While one would think that a fair wage would be one mutually agreed to by the labor buyer (employer) and labor seller (employee) you would be wrong under the politics of Newspeak.  Proponents of Fair Wage legislation and executive orders believe that the value generated by labor is irrelevant and expect employers to hire entry level workers at an economic loss.  Fair Wage mandates and raises in the minimum wage have been proven time and again to increase unemployment by making entry level jobs either disappear, move overseas or be replaced by automation.  When is the last time you used a full service gas station (not including those required by law such as in New Jersey), checked out at a discount store that didn’t have a self-checkout option or walked past your banks 2 or 3 tellers to use the ATM…all represent jobs lost to Fair Wage mandates.  Without those entry level jobs how is an unskilled or poorly skilled worker to develop skills, a job history or a reputation with his/her employer that leads to promotion and further opportunities for success?

Do you have a Newspeak term you’d like us to highlight on Prepography?  If so, use Submit A Prep Tip to let us know.

Until The Implosion – Today’s Quote

Funding the welfare state by vast borrowing and regulatory taxation hides the costs from the public.  Hence its political potency.  Until the implosion.

Dr. George Will, Author & Columnist

My Journalism Teacher Said There’d Be No Math – Today’s Quote

Thanks to a recovering economy [just saying it doesn’t make it so], spending restraint [by which we mean we didn’t increase spending by nearly as much as some inside the beltway wished to] and higher tax receipts [my tax bills went up, how about yours?], the Congressional Budget Office now projects the [increase in the U.S. debt] deficit for 2014 will be $514 billion, or 3% of the size of the U.S. economy.

As a share of gross domestic product [which is the total productive output of our country], that represents a nearly 27% drop from last year [if you consider a decrease in the annual increase a drop] , and marks the smallest [annual] deficit [debt increase] since 2007.

In its latest budget and economic outlook, released Tuesday, the CBO [the nonpartisan Congressional Budget Office] also projected that the 2015 deficit would reach a low [meaning that the increase in the national debt for 2015 would be the smallest annual increase] for the coming decade, at $478 billion, or 2.6% of GDP, and then stay below 3% for a couple of years after that.

But then the downward trajectory [of our annual overspending] ends.

Reported by CNN under the headline, Deficit continues to drop sharply – CBO – Feb. 4, 2014

Andrew’s Note: Why do we as consumers allow journalists to get away with not correcting the math…or the context of the numbers they’re handed.  Most economic reports I read anymore have been through so much spin that they’re still rotating.  A decrease in an increase of overspending is great economic news?  We’ve racked up so much national debt that even the IMF now thinks it’s questionable if we’re ever going to be able to pay it back.

The Market Would Implode – Today’s Quote

We have a lousy economy, and the Fed is patching it by creating inflation…  We are spending all this money that the Fed is creating.  That IS inflation… if the Fed were ever to do the right thing, and let interest rates go up, and shrink its balance sheet, the market would implode.

Peter Schiff

Unicorn Farts – Today’s Quote

Our economy is floating on hopes and unicorn farts.

Jeremy Knauff via 5 Stages of Prepping from the website How To Survive It

Minimum Wage Causes Unemployment – Today’s Quote

It is astounding that after decades of empirical evidence, there continues to exist misguided minds who fail to understand simple supply and demand and how these forces shape the minimum wage debate.

Numerous studies across different times and locations have shown overwhelmingly that higher mandatory wages equals higher unemployment for low skilled workers. This is a fundamental economic law, like gravity.

The Keynesians out there have always argued that you can have your cake and eat it too just don’t pay attention to the accompanying debt and inflation. Their emotionally biased way of thinking has distorted the playing field for low skilled employees by creating artificial price levels. Instead of allowing the invisible hand of the market to function, these authoritarian policy makers prefer to interfere and dictate like the old Soviet Politburo and we all know how that turned out.

Jason Scheurer via Minimum Wage and Unemployment: A Zero-Sum Game

The Genius Of Capitalism – Today’s Quote

The genius of capitalism is that there is a link between effort and reward.  In a genuine market economy (as opposed to cronyism), people can only make themselves rich by working harder and smarter to satisfy the needs and wants of others.

The blunder of statism is that the link between effort and reward is damaged.  Punitive tax rates, for instance, punish people for producing.

Dr. Daniel J. Mitchell via A Thanksgiving Tale of How Property Rights Saved America

The Folly of the Universal Basic Income

A journalist for The Atlantic named Elizabeth Stoker and her colleague Matt Bruenig are trying to create a monster even more destructive than Stoker’s namesake Bram created..but this one is known as the Universal Basic Income.

In the United States, we are generally told that poverty is a deeply complicated problem whose solution requires dozens of reforms on issues as diverse as public schooling, job training, and marriage.

But it’s not true. High rates of poverty can, as a policy matter, be solved with trivial ease. How? By simply giving the poor money.

via How to Cut the Poverty Rate in Half (It’s Easy) – Matt Bruenig and Elizabeth Stoker – The Atlantic

The economically undereducated due go on to point out how simple the process would be and all the great benefits like:

  • Increased tax revenues…from taxing a portion of the money that government gives away to every adult in the nation that it raises in taxes and presumably borrowing
  • Elimination of the exorbitant cost of all those poverty fighting programs…but they go on to say their proposal will cost more than double the cost of all those programs and their inefficient management (more…)

Expecting government spending to drive the economy is like…

I love analogies.  Analogies are a great way to explain complex relationships in just a sentence or two.  A few days ago I solicited your help with completing the analogy below:

Expecting government spending to drive the economy is like…

We’ve had a number of submissions and different readers took very different approaches but I was looking for that one best analogy to drop into my verbal repertoire for those times when I’m visiting with those who call for more government intervention to fix the economy.  It’s amazing how many otherwise intelligent people have failed to learn the lesson that the more centralized an economy is the less efficient it is.

I sometimes wonder where our penchant for big government solutions to each and every challenge comes from…is it that most of us were educated by government (or at least public) employees?  I received my education almost exclusively in public schools and university but I was taught how to think, not merely what to think.  I remember numerous with agenda pushing indoctrinators posing as ‘teachers’ but they were counterbalanced by those fine educators who mentored us in how to properly analyze data, construct an argument and present our findings whether they agreed with us or not.

When faced those with an inadequate grasp of history, economics or both I now have a new tool in my repertoire, an analogy that cuts right to the chase and should be easily understandable by the vast majority of those I meet in my day to day life and it is: (more…)

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