Friday, May 10, 2013

The Republi-CON Government and Household Debt CONparison

"A government does not have a life cycle, does not ever expect to stop generating income to support itself, and, therefore, does not ever have to retire its debt. It must keep its debts at a manageable size relative to the economy, which the U.S. has done over that 60 year period. If the economy is growing over the long term, that means the government can run a deficit and grow the debt every year -- sustainably. . .

If the recent expansion of the public debt is a matter of overriding economic concern, why is Boehner so resolutely opposed to tax increases to pay it down? America’s economy has thrived under a variety of tax policies, including much higher top marginal tax rates than are in effect today. Shouldn’t Boehner be willing to accept tax increases, or perhaps even be eager for them, in order to fight the debt menace he cites?

Boehner doesn’t really care about the public debt, as he made clear when he repeatedly supported debt-expanding measures under a Republican president. What Boehner and House Republicans really want are excuses to cut federal spending, particularly on programs such as Medicaid and food stamps that support low-income Americans. But those cuts are unpopular, so Republicans frame fiscal debate to make such cuts appear necessary to avoid disaster."

Read Bloomberg, Boehner Accidentally Explains Why His Deficit Position Is Phony

The article includes a chart showing the growth of "the net debts of Wal-Mart Stores, Inc. They have soared -- up 5,760 percent since 1987. By comparison, the roughly 600 percent rise in the U.S. public debt over the same period looks restrained. Is Wal-Mart mad? How long can it go on just borrowing and borrowing and borrowing?

The answer is 'as long as Wal-Mart keeps growing.' The white line shows Wal-Mart’s ratio of debt to earnings before interest, taxes, depreciation and amortization. And what that shows is that Wal-Mart’s debts have been rising to keep pace with its growing earnings. Similarly, for six decades U.S. government debt has been rising roughly in line with the growth of the economy. Over the last few years, it’s grown a lot faster because of cyclical economic weakness. The proper matter for debate is whether recent deficits are too large -- not whether six decades is too long to run them."

Why Are Republi-CONs Opposed to Immigration? In Order To Protect the 'White Native Population'

The Heritage Foundation is a CONservative think tank. 

It "made something of a splash with its study suggesting that immigration reform will cost the public trillions. Past work by one of its co-authors helps put that piece in context.

Jason Richwine is relatively new to the think tank world. He received his PhD in public policy from Harvard in 2009, and joined Heritage after a brief stay at the American Enterprise Institute. Richwine’s doctoral dissertation is titled 'IQ and Immigration Policy'; the contents are well summarized in the dissertation abstract:

The statistical construct known as IQ can reliably estimate general mental ability, or intelligence. The average IQ of immigrants in the United States is substantially lower than that of the white native population, and the difference is likely to persist over several generations. The consequences are a lack of socioeconomic assimilation among low-IQ immigrant groups, more underclass behavior, less social trust, and an increase in the proportion of unskilled workers in the American labor market. Selecting high-IQ immigrants would ameliorate these problems in the U.S., while at the same time benefiting smart potential immigrants who lack educational access in their home countries.

Richwine’s dissertation asserts that there are deep-set differentials in intelligence between races. While it’s clear he thinks it is partly due to genetics — 'the totality of the evidence suggests a genetic component to group differences in IQ' — he argues the most important thing is that the differences in group IQs are persistent, for whatever reason. He writes, 'No one knows whether Hispanics will ever reach IQ parity with whites, but the prediction that new Hispanic immigrants will have low-IQ children and grandchildren is difficult to argue against.'"

Read the Washington Post, Heritage study co-author opposed letting in immigrants with low IQs.