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Wednesday, July 14, 2010

La Mordida

US stock markets rallied during the last 12 months due to artificial (not market driven) actions by the federal government.   Despite the stimulus spending, the first time home buyers tax credit, and massive "capital injections by the federal reserve," official unemployment estimates are still near 10%.  The feds tried the FDR plan, and it failed this time too.

This has saddled the many with massive debt to benefit the privileged few.  The too-big-to-fail propaganda was created to hide the federal government's confiscation of privately owned property and use of tax dollars to prop up economically non-viable industries.  The now-pending Dodd-Frank bill also authorizes the federal government to seize businesses that seem likely to fail due to government meddling.

If businesses can't compete within their market niches, they deserve to fail, should have their doors shuttered, and have their remaining assets sold to repay investors.  Artificially supporting stagnant and bloated buggy-whip-maker-type operations coddles, pampers, and protects the moneyed few at the expense of the many who are the nation's taxpayers.

The US steel industry is an example of an industry transformation.  Non-viable companies folded, merged, and restructured to lower costs and improve cost-effectiveness.  A new industry emerged that is able to compete in the global economy.  This is how free enterprise works; we add new innovations and eliminate failed experiments.  In the words of Ray Kroc: "As long as you're green, you're growing.  When you're ripe, you start to rot.

The Corruptocrats are well along into the rotting process.  This chart was compiled by Open Secrets.  It shows which organizations have contributed most to political campaigns from 1989 to 2009.  Notice carefully that of the heavy hitters in the top twenty, three contribute about equally between Democrats and Republicans.  Fourteen of the twenty tilt heavily toward Democrats, and two tilt moderately toward them.  Of the top twenty, only two tilt toward Republicans and only slightly.

Four of the top 20 are government unions' political action committees.  In the reported period, they contributed about $172 million dollars to elect proponents of the mommy state.  First, follow the money.

Government agents take money from private sector workers to pay bureaucrats more than they can command for their services on the open market.  The government unions take a cut of those bloated compensation packages.  Then, they contribute to the political coffers of the very government hoods who are preventing taxpayers from buying labor at rates determined by the laws of supply and demand.  The money trail is clear.

Government takes privately earned money.  It gives bureaucrats lavishly extravagant compensation packages.  The unions take a bite and contribute some of it to the politicians who are perpetrating this taxpayers' fleecing.

Private sector unions are little different.  The National Labor Relations Board, the federal Department of Labor, and various supporting state and federal agencies keep a club over the heads of employers that forces them to accept union monopolies on the supply of labor for their companies.  This keeps business owners from shopping in an open marketplace driven by the forces of supply and demand in which increased demand raises prices, and increased supply decreases them.

This is just another back door tax levied against the majority (private sector) of workers in this nation.  It is a surreptitious tax because unelected officials create and effect the process.  The House neither appropriates this money nor allocates its spending.  It exists as a means to inflate wages arbitrarily for the purpose of paying off the overlords who are re-elected by its proceeds.    

Among the top 20 campaign contributors in the last 10 years, two lean slightly toward Republicans, 4 divide money about evenly, and the other 14 are comprised mostly of taxpayer supported government and private unions.  Of the non-union entities, one is ActBlue, a Democrat front organization, and the other is AAJ, formerly the Trial Lawyers Association, whose significant contributions are helping to prevent tort reform.

When seen in conjunction with other forces such as the heavily subsidized efforts of ACORN, another Democrat front operation, and similar other organizations, a pattern starts to emerge.  Although the Theftocrats did not invent the process of buying constituents' votes by confiscating the legal, social, economic,and political resources of others, they are the largest purveyor in the nation.

May your gods be with you.

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