Showing posts with label bankrate. Show all posts
Showing posts with label bankrate. Show all posts

Monday, April 8, 2024

April, 2024, By The Numbers: Taxing The Rich Is Still Stupid, High Taxes Mean Higher Unemployment, and Biden Kills The American Dream of Home Ownership

 On a periodic basis we do some posts that fall under the theme of “by the numbers.” Rather than trust what the American politician tells us about reality, we like to examine the real numbers and the real reality in the world to understand what is actually going on. Relying on politicians, and their cohorts in the media, to tell us what is reality is always a sucker bet. They have their own agendas and goals, usually centering around their needs and self-enrichment. So we need to look at the reality of the numbers to determine what is really going on.


Previous analyses of “by the numbers” can be accessed by entering the phrase in the search box above. This is the third and final post this month where we look at the numbers to truly find out how good, not likely, or bad, most likely, the American political class is doing in managing our tax dollars, protecting our freedoms, and resolving major issues that affect all of us. 


1)While  our country may be able to survive bad Presidents, bad Congress people, and a biased and corrupted free press, one thing that it may not survive is the mountains of debt that American politicians have piled up at all levels of government. At some point, the $34,000,000,000,000 worth of Federal government  national debt, a number that grows every second of every day, will crash our economy and our freedoms.


But those in Washington only occasionally pay attention to this ticking time bomb number and never do anything about it. Consider a set of numbers that shows how out of control the debt burden is and how stupid ideas like “taxing the rich” are just that, stupid ideas:


  • According to the latest analysis by Forbes, the combined wealth of every billionaire in the world is about $14.2 trillion.

  • To show you how out of control our national debt is, if we could somehow liquidate every asset of every billionaire in the world and magically apply the proceeds to our national debt, we would only be able to pay off about 41% of the Federal government’s debt.

  • But they would not give up their wealth freely so let’s say we only took 10% a year as a tax on wealth.

  • Then we would only pay off about 4% of our national debt.

  • But that number includes every billionaire and I doubt that billionaires in China and  England and elsewhere would hand over their billions of dollars in wealth to help pay down our national debt so that 41% number is way too high.

  • About 40% of the world’s billionaires, according to Forbes, live in this country so that 41% number would really be about 16% of the national  debt if all of America’s billionaires had all of their assets confiscated and applied to Washington's debt.

  • And we only took 10% then you are looking at paying down only about 1.6% of the  national debt.

  • In fact the  richest billionaire in the world is not an American, but Frenchman, Bernard Arnault, whose family conglomerate is worth $233 billion, or about .7% of our national debt.

  • Elon Musk is worth about $193 billion so confiscating his entire fortune would pay off less than the .7% that Arnault and his family would pay off.

  • Amazon founder, Jeff Bezos is worth about the same as Musk so taking all of his wealth would also pay off less than 1% of the national debt.


You get the idea: Washington politicians have  piled up so  much debt that even if you confiscated every asset of the billionaires living in the world, or in this country, you would not come close to paying off the debt. And thus, the reason why taxing the rich continues to be a stupid saying and strategy. 


The reality is that Americans are not taxed too lightly: politicians simply spend and waste too much.


2)Speaking of high taxes, it has always been our position that the higher the tax burden any government places on their citizens, the worse off the economy is of that government entity. Politicians and government bureaucrats never spend wealth more efficiently or more effectively than private citizens and companies.


Consider more proof our theory:


  • The latest state level unemployment rates are out.

  • We have often pointed out that some of the highest taxed states include California, New York, Illinois, and New Jersey, states that we believe are likely to be the most likely states to declare bankruptcy in the relatively near future.

  • And it turns out that these states have some of the highest state unemployment rates in the country with California (50th ranked worst unemployment rate), New Jersey (48th), Illinois (47th), and New York (43rd) following close behind with unemployment rates at their state level  being 4.4% or higher.

  • These are the same states that continue to lose population year over year as their citizens flee to other areas and states where the tax burden is not so onerous.


Bottom line: have high taxes, have high unemployment, have high taxes, lose citizens.


3)It is a fact that the cost of living has skyrocketed under the Biden Presidency. His economic policies have allowed inflation to run rampant, causing prices to rise on  just about everything we buy for our lives including eggs, gasoline, clothing, etc. And somehow his economic policies have been so bad that the following numbers are just mind blowing that he could screw up an aspect of our economy this badly  in such a short time:


  • When Biden took office in 2021, in six states a family needed over $100,000  a year in income to afford a middle class, median priced home.

  •  Just three years later, Biden’s failed economic policies have driven that number up to 22 states where a family needs an annual of over $100,000 to afford a middle class home.

  • This is an almost four fold increase in just over three years.

  • This analysis by Bankrate starts in January 2020, and takes it to January 2024.

  • And while their analysis time frame covers the last year of the Trump administration, most of the increase is no doubt occurring as a result of the Biden administration.

  • Their analysis estimated that a family needed to earn an annual  income of $110,871 to afford that median priced house today, up a whopping 46% since 2020.

  • When Biden took office in January, 2021, the average interest rate on a 30 year fixed mortgage was 2.5%.

  • As of March, 2024, Bankrate estimates that the average interest for that same type of mortgages was 7.07%, an almost threefold increase.


Biden has proposed some window dressing programs to address this situation but providing a two year, $5,000 tax credit to home buyers and other such token moves will do nothing when the mortgage rate has increased almost threefold under his Presidency.  His proposed tax credit programs show, again, that he and Washington have no idea on how to fix what they broke in three short years.


That will do it for today’s Numbers: Biden broke the home ownership dreams of millions and millions of Americans, have high taxes get high unemployment, and taxing the rich still makes no sense as long as Washington politicians have no  restraint when it comes to overspending their tax revenue stream.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



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Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:


Monday, December 15, 2014

December, 2014, Part 3, The Unfolding Disaster That Is Obama Care: Ousted Obama Care Politicians, More Higher Costs News, and Another Failed Obama Promise

It is the middle of another month, which means it is time for another set of monthly update posts on the unfolding disaster that is Obama Care. We have written extensively on this subject for a number of years now, finally evolving our writing into a monthly update series beginning in the summer of 2013.

The first post in this month’s update series can be accessed at:


It is our contention, backed up with dozens of blog posts and hundreds of examples, that Obama Care is easily the worst piece of legislation ever produced and enacted by the Washington political class. To prove out point, just review previous posts by entering the search term, “the unfolding disaster that is Obama Care” in the search box above or just browse through the previous monthly posts over the past years to find out why this law is so bad.

Below are just a few of the many failings of the law:
  • While the law did get health insurance coverage for millions of uninsured Americans, it also caused millions of Americans to actually lose their current health care insurance coverage.
  • Rather than decrease the annual cost of health insurance for Americans households by $2,500, as promised by President Obama, on average, it actually increased the cost of household health insurance.
  • Rather than being able to retain access to their preferred doctors, hospitals and drug treatments, millions of Americans lost access to their preferences despite Obama’s promises that they would not lose that access.
  • Despite the promise that the number of emergency room visits would go down, the volume of visits has gone up.
  • The law made a doctor shortage crisis even worse.
  • The law’s weak data systems operations placed millions of Americans at a high risk of identity theft.
  • The law has resulted in the American taxpayer subsidizing abortion expenses despite the promise that Obama Care insurance policy subsidizes would not allow taxpayer money to subsidize abortions.
  • The law never addressed the underlying root causes of high health care costs in this country (e.g. a fat, sugar, and salt infested food chain, smoking addictions, lack of exercise, aging diseases, etc.) and thus has no chance of actually doing what it was supposed to do, reduce health care costs in this country.
  • The law has stunted economic growth and employment growth throughout the economy.
  • The law will add over a trillion dollars to the national debt despite the Obama promise that it would actually reduce the national debt.
This is probably just a partial list of the bad things this law has done to the country. Let’s read on to see the latest disasters from this disastrous piece of legislation. 

1) Earlier in this update series we reviewed how half of the sixty U.S. Senators who voted for Obama Care will not be in the Senate when it convenes in 2015. Now some of them are not around because of reasons not related to Obama Care, e.g. John Kerry is now Secretary of State, but at least half of those who lost their seats likely lost it in large part due to Obama Care.

A recent Bloomberg analysis took the analysis a little further, beyond just the Senate relative to last month’s elections:
  • In 2009, there were 60 Democrats in the Senate. In 2015, there will be 46, a decrease of 23%.
  • In 2009, there were 257 Democrats in the House of Representatives. In 2015 there will be 188, a decrease of 27%.
  • In 2009, there were 32 Democratic governors. In 2015, there will be 21 Democratic governors, a decrease of 34%.
Now some of these Democrats may have lost their seats for other reasons such as the economy, bad campaign strategies, scandals, etc. But the unpopularity of Obama Care and what it has done to the country and the economy in a major and highly visible way had to have an a major impact on voters, a reality that is verified by interviews of election and political experts done by Bloomberg related to these figures.

The good news is that voters punished those politicians that made bad legislation, lied, and false promises. The bad news is that while they are now gone, the bad legislation they made is still with us.

2) We have constantly reported on how health insurance costs will be going up next year and in future years, according to experts in the field. We recently quoted sources that showed that the average increase for Obama Care Silver plans, apparently the most popular plans, will go up an average cost of 5% in 2015, counter to what the President hyped a few years ago, namely that, on average, health insurance costs would go down $2,500 a year.

However, a recent article in Investor’s Business Daily (IBD) showed steeper price increases in the lower tiered, less expensive, and less robust Bronze plans offered via the Federal government’s Obama Care process, Healthcare.gov. Citing projections from the Healthcare.gov website, IBD wrote that Bronze plan premiums will increase next year by an average of 18% for those who purchase through the Federal Obama Care health care exchange. 

That estimate was calculated using the largest market in each of the 34 states that use Healthcare.gov as a customer portal for Obama Care. It does not include those policies purchased in state operated Obama Care exchanges.

IBD summarized the price results by major metro areas in the following graph:


















The IBD article points out a few interesting and/or disturbing trends:
  • Only nine of the Healthcare.gov metro areas can expect to see average premium prices fall or remain level next year for Obama Care Bronze plans.
  • Five metro areas that will see Bronze plan premiums increase by more than 38%.
  • Pity the Bronze plan holders in the Cedar Rapids, Iowa market who will see their bronze plan premiums more than double. 
So much for the legislation reducing or even containing health care insurance costs.

3) President Obama promised a lot of things that never came true relative to his pet piece of legislation, many of which were listed at the beginning of today’s post, e.g. premium costs would go down, you could keep your current doctors, your could keep your current policy, etc. One of his biggest boasts was how easy it was going to be to obtain Obama Care health insurance coverage via the online health care exchange process:


“Starting on Tuesday, every American can visit HealthCare.gov to find out what’s called the insurance marketplace for your state,” Obama said. “It’s a website where you can compare and purchase affordable health care plans … the same way you shop for a plane ticket on Kayak...I promise you, this is a lot easier. It’s like booking a hotel or a plane ticket.”

Well, this looks like another promise that went bad or was an outright lie that was used to sell in this horrid piece of legislation to the country. According to a recent article from the website, www.bankrate.com, almost two thirds of Americans say shopping for health insurance is as bad as having a tooth cavity filled and seven out of ten Americans say it is as bad as preparing one’s own tax returns or sitting in the middle seat on an airline flight. Trust me, booking a hotel room or plane ticket online was NEVER this painful or complex, promise broken.

Now, I am pretty sure that some of this angst in obtaining health insurance is not just related to Obama Care. But the President boasted that a lot of this angst would go away under his legislation, a boast that apparently has not taken hold if it is still like going to the dentist when it comes time to purchasing health care insurance. Just another day and another Obama promise failing to become reality.

Failed promises and increased costs, seems to be the primary results of the Obama Care legislation. And unfortunately, we are not done documenting the continued failures of the law in these categories of pain and others. More to come in the following days.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now: http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.bankruptingamerica.org

http://www.conventionofstates.com
http://www.youtube.com/watch?v=08j0sYUOb5w




Tuesday, July 1, 2014

July, 2014 Political Class Insanity, Part 1: Corruption At The Export-Import Bank, Housing Still In The Dumps, Household Savings In The Dumps, And Medicaid Fraud Continues

It’s the beginning of another month which means it is that time again to review the latest lunacy, insanity, ineffective government programs, and wasteful spending of the American political class. I sincerely believe that we are currently living through a period in this country’s history where we are being served by the most ineffective and unproductive set of politicians that this country has ever had to endure. 

Given that the latest approval rating for the U.S. Congress and the current President are at their lowest levels ever, it seems that a lot of America agrees with this assertion and observation. To prove our point, take a look at the following recent instances of insanity and see if you do not disagree:

1) The Federal government’s Export-Import bank is a Federal agency that supplies low cost loans and loan guarantees to other countries and companies in other countries in an attempt to have them purchase U.S. goods and services. The prime example and beneficiary of the Export-Import Bank is Boeing. Foreign airline carriers can get low cost loans from the American taxpayer to purchase airplanes from Boeing. This helps Boeing sell planes overseas and theoretically helps Boeing hire more American workers at its domestic airplane manufacturing plants.

But the questions that should be asked is why aren’t Boeing and Boeing shareholders doing this work, making these loans, taking these risks? Shouldn’t that be part of their business plan and responsibility? Why should the American taxpayer put their wealth at risk? 

All good questions and pertinent since later this year the renewal of the chart for the Export-Import Bank is up for renewal and it is getting a lot of Washington attention. Some in Washington want to terminate the program since it is a prime example of crony capitalism at the expense of the American taxpayer. Others, most likely campaign funding recipients from companies like Boeing, want to keep the program alive and funded.

But let’s ask a different question: how well run is the operation? Not too well according to recent news reports:
  • The Wall Street Journal recently reported that four employees of the Export-Import Bank have been removed in recent months because of allegations of kickbacks, steering Federal contracts to favored firms, and other corruption.
  • The Heritage Foundation identified at least 74 instances in the past five years where bank executives were forced to act on the basis of “integrity” investigations by the Office of Inspector General. 
  • Dozens of other fraud cases involving Export-Import beneficiaries have been referred to the Department of Justice for prosecution.
  • In a 2013 report to Congress, the Office of Inspector General (IG) characterized the Export-Import Banke as exhibiting “weaknesses in governance and internal controls for business operations.”
  • The latest updated report to Congress noted the dismissal of two bank employees and a letter of reprimand against another in a six-month period as a result of the IG’s investigations.
  • According to a 2013 government survey, only 42% of bank employees agreed with the statement: “My organization’s leaders maintain high standards of honesty and integrity.”
  • Only half of those surveyed agreed they can disclose a suspected violation of any law, rule or regulation without fear of reprisal.
  • These results are not surprising since as of March 31, 2014, 47 criminal judgments and 42 pleas were obtained in the preceding six months.
  • One example of the corruption and incompetence revolves around the fact that the bank approved a whopping 96 loan transactions in a two-year period for Gangland, USA, which purported to export electronics from Miami to South America. However, according to prosecutors, company owner Jose L. Quijano received more than $3.6 million in fraudulent loans from the bank.
  • The bank approved 18 loans involving $13.6 million to Leopoldo Parra, who pleaded guilty in 2012 to wire fraud and conspiracy to commit money laundering. According to prosecutors, Parra and his co-conspirators fraudulently obtained the loan proceeds and used them for personal gain.
We could go on and on with other documented cases of fraud, criminal negligence, and cronyism but you get the idea. It is impossible to believe that an organization run this poorly and this fraudulently has any chance of being a net positive to the American taxpayer. 

Additionally, an in-depth article from Forbes in early May, 2014 pointed out that about 70% of the bank’s activity is solely dedicated to supporting Boeing, the bank only affects about 2% of the nation’s exports, it is likely a net negative to the Federal deficit, and it disadvantages many domestic companies. (http://www.forbes.com/sites/dougbandow/2014/05/05/close-the-export-import-bank-cut-federal-liabilities-kill-corporate-welfare-promote-free-trade/2/)

Shut it down and make companies like Boeing pay for their own customer financing and risk, regardless of how it affects campaign contributions to incumbent politicians.

2) This falls into the good news/bad news situation. More than four years after the Great Recession ended, the economy is still struggling to recover, making this post recession recovery the worst ever. Seems the Washington political class still has no clue when it comes to generating economic growth despite record lengths of time with record low interest rates, an $800 billion failed economic stimulus plan, and an energy revolution going on that helped reduce energy costs over the past several years.

But here’s some good economic news: last month, new home sales nationally surged by 18.6%. The bad news: those sales levels are still a whopping 63% below the levels enjoyed before the recession. They are also still way below where they were in the early 2000s, before the housing bubble starting to grow. The following chart summarizes the dire housing situation, courtesy of the political class:

New Home Sales Surge By 18.6% In May, Now Only 63% Below Pre-Crisis Highs








There can be no doubt that when it comes to economics and economic policy, our current politicians are insanely ignorant and ineffective.

3) Despite being years away from the latest recession, a recent survey from Bankrate of consumers found that just one in four Americans has no emergency savings in their household. Additionally, sixty-seven percent of the survey respondents have saved less than the recommended six months’ worth of expenses and half have saved less than three months’ expenses. The percentage of Americans with at least three months’ expenses in savings declined from 45% last year to just 40% this year.

According to Greg McBride, Bankrate’s chief financial analyst: “Americans continue to show a stunning lack of progress in accumulating sufficient emergency savings. Even among the highest-income households -- those with annual income of $75,000 or above -- fewer than half (46%) currently have a six-month savings cushion."

Given that the economy shrank a whopping 2.9% in the first quarter of this year, historically we are due for another recession soon, over twenty million Americans are still unemployed or underemployed, and we just proved that the political class has no idea how to manage economic policies and growth strategies, many Americans and their families are likely to be facing some severe financial times in the near future.

4) Let’s finish up today with another expensive example of wasteful spending of taxpayer wealth, courtesy of government incompetence and the political inability to operate a bureaucracy. Medicaid, the health care organization that the Obama administration wants to significantly increase in size, wrongly paid out more than $14 billion in 2013 to managed care organizations.

The fraudulently paid out expenses were often for treatments and services that were not necessary, were never performed or were not eligible for Medicaid funding and coverage. To put the fraud in perspective, according to the Government Accountability Office (GAO), $14 billion could have been used to pay for the brand new airport being built in Beijing, China and was equal to the how much the U.S. government spent on training Iraq’s military over the past eleven years. $14 billion is a lot of money, all of which vanished to do the ineptness of the Federal government.

According to the GAO, government entities at both the state and Federal levels have recovered "only a small portion" of the fraudulently paid out taxpayer wealth. Thus, the GAO has "little confidence that Medicaid can fix its processes and as Obama Care expands Medicaid enrollees, even more dollars will be "vulnerable to improper payments." 

What sane person or organization expands its operations before fixing its operations that are currently losing billions of dollars to fraud and incompetence? The Federal government and the political class that operates it, of course.

That will do it for the insanity today. We now know that the Export-Import Bank needs to fade into history, given the rampant cronyism of its operations, politicians make very bad economists as measured by the pitiful state of the housing industry and the pitiful state of Americans’ saving profile, and Medicaid is still a hotbed of wasteful spending and criminal fraud, a situation that is likely to get worst going forward. More insanity tomorrow.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now: http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.robertringer.com/
http://www.youtube.com/watch?v=08j0sYUOb5w