Showing posts with label census. Show all posts
Showing posts with label census. Show all posts

Sunday, March 20, 2022

By The Numbers: Government Loses Billions, Government Cannot Count, and Pelosi Talks Math Gibberish

 On a periodic basis we do some posts that fall under the theme of “by the numbers.” Rather than trust what American politicians tell 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.


1) All too often we have discussed the total inability of the Federal government to track, manage, and protect taxpayer assets from criminal fraud and general government incompetence. To combat the negative income impacts from covid, the Federal government and the politicians that oversee its management passed over $5.5 trillion in aid for Americans to get them through the covid crisis.


Not unexpectedly, a large portion of that $5.5 trillion was lost through fraud and incompetence:


  • The FBI recently reported on a “massive fraud scheme” in which nonprofit groups in Minnesota illegally diverted covid relief money intended to feed needy kids and purchased real estate, cars and other items with the illegally obtained taxpayer funds.

  • The fraud is estimated to be about $65 million.

  • The Secret Service has opened up over 900 investigations into covid fraud possibly involving $100 billion.

  • A truly despicable number from the Labor Department estimates that as little as 23% of the $800 billion doled out in the Paycheck Protection Program actually made into American workers’ paychecks.

  • Another study found that more than $87 billion in emergency unemployment benefits were improperly paid out.

  • The Small Business Administration, one of the historically more inept Federal agencies, paid out over $6.2 billion to loan applicants suspected of using identity theft to procure the funds.

  • The IRS managed to send out 2.2 million stimulus checks, worth about $3.5 billion, to dead people.


Everyday millions of Americans are homeless, hungry, and fighting drug addiction. Imagine how many of those homeless folks could have gotten shelter for the $3.5 billion the IRS wasted. Imagine how many meals could have been provided to hungry Americans with the $6.2 billion the Small Business Administration screwed up with. Imagine how many drug addicted Americans could have been treated with the $65 million wasted in Minnesota. Imagine we had a political class and a government bureaucracy that was not so inept, corrupt, and inefficient. 


2) But it is not just money that the Federal government is so bad about handling. Consider how the Feds really don't know how to count as witnessed by some recent covid studies:


  • Apparently those daunting and frightening covid death totals in this country were not quite as bad as initially reported by the government.

  • We had seen early examples of how inept the government was in counting covid deaths when we discussed the reality that two people in Colorado had died from gunshot wounds but their deaths were classified as being caused by covid.

  • And now the truth is starting to emerge as witnessed by the Massachusetts Department of Public Health which recently announced that it will “update its criteria” for classifying covid deaths.

  • The Department is going to go back and retroactively change its state covid death numbers as far back as March, 2020.

  • This effort has already decided that over 4,000 Massachusetts covid designated deaths were actually not caused by the virus and these 4,000+ cases have been removed from the state’s death toll.

  • Since Massachusetts accounts for about 2% of the country’s population, a very rough estimate of the total country’s falsely designated covid deaths would be over 200,000 falsely reported covid deaths.

  • Since the CDC currently estimates that about 970,000 Americans died from covid, dividing that 200,000 estimated false covid deaths by the official government 970,000 number indicates that possibly over 20% of covid related deaths are bogus. 

  • And keep in mind this is Massachusetts’ first pass at estimating the wrongly categorized covid related deaths, which means that the 200,000 national estimate is probably on the very low side of reality as is the 20% of all covid deaths in this country are bogus.


This is not to say covid was not horrific, it was, especially for the vulnerable members of society. But you cannot make good public health care decisions if you do not have good numbers and it appears that we have not been dealing with good, realistic numbers for the covid duration. 


Whether this was intentional on the part of politicians and government bureaucrats to control the population and restrict our freedoms is another discussion. But the numbers were wrong and that is a public health failure. 


3) The following numbers fiasco falls under the general category, “You had only one job and yet…”:


  • The Census department has been counting American citizens for well over 200 years, as required by the Constitution.

  • You would think that by this time they would know how to do the job, their only job.

  • Although the Census Bureau has released the official findings from its 2020 census, follow up analyses show they did some serious miscounting.

  • The Bureau originally said there were 323.2 million people in the U.S. population.

  • But now it appears that they under-counted the population by about 782,000 people.

  • They also said they found 18.8 “omissions in the population,” whatever that means.

  • This additional analysis found that whites and Asians were overcounted and blacks, Hispanics, and Native Americans were undercounted.

  • But screwing up the Census numbers in 2020 should not be a surprise since even the director of the Bureau admits they have screwed up the numbers for years: “The 2020 Census undercounted many of the same population groups we have historically undercounted, and it overcounted others,” Director Robert L. Santos said.

So the Bureau readily admits they have been wrong in the past and rather than fix their number counting process they screwed up again in 2020. Between covid and the Census it makes you wonder if any number coming out of the Federal government has any shred of credibility at all.

4) And one last numbers observation regarding American politicians. Given the numerically related public comment Nancy Pelosi recently made, we possibly get an insight why the government is so bad at managing numbers.  At a recent press conference she actually said the following: “What may come as news to someone is that when you subtract money, money is subtracted.” 

Seriously, that is the depth of her understanding of numbers? And she is actually not afraid to show this ignorance? No wonder the government cannot count, a leading politician issues this type of nonsense. Her actually statement can be seen at the following link: 

https://fearandblood.com/national/watch-pelosis-brain-breaks-during-presser-acts-like-the-town-drunk-when-you-subtract-money-money-is/

So, the Federal government cannot track our tax dollars, the Federal government cannot accurately count covid deaths, the Federal government cannot accurately count the population, and a leading Washington politician talks nonsense when it comes to math. Numbers don’t lie but government agencies and politicians do.

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Tuesday, April 2, 2019

Alexandria Ocasio-Cortez Insanity, Part 7: Prioritizing Illegals Before Citizens, Exhibiting Her A.D.D. and More

Over the past few months, New York City Congresswoman Alexandria Ocasio-Cortez has established herself as a human gaffe machine. Her inability to do simple math, her outlandish ideas based on an alternative reality, her economic ignorance, and lack of common sense has resulted in an almost daily stream of idiocy, inane comments, and ridiculous ideas that have no basis in reality.

As a result, most of our recent political class insanity posts have almost always had an Ocasio-Cortez piece of insanity. Thus, we have decided to separately track her craziness and idiotic takes on economics, business, government, and whatever else on a regular basis under its own set of posts. She deserves to have a separate effort that captures all of the ridiculousness she espouses.

The original format we were going to use was to start with a set of her original inane ideas and just continue to build on that initial list as time goes by. But after just three summaries of her idiocy and stupid ideas it has become obvious that we cannot continually add to the existing set of ineptness, that list would get too large too quickly.

Thus, each new Ocasio-Cortez post will have only the latest gaffes out of her mouth. To review her previous idiocies just enter her last name in the search box above. The latest post can be accessed at:

https://loathemygovernment.blogspot.com/2019/03/alexandria-ocasio-cortez-insanity-part_31.html


Let’s get started:

1) It is becoming more and more obvious to anyone who listens to Washington liberals these days that these politicians are more interested in helping illegal immigrants than taking care of needy Americans.These Democrats see illegal immigrants as future voters who are most likely to vote Democrat and advance their agenda at the cost of the needs and desires of legitimate American citizens.

No one illustrates this sick take on priorities than Ocasio-Cortez and she is not ashamed to blatantly state that illegal immigrants are more important to her than legal, real American citizens:

  • In a recent Congressional hearing in front of a House committee, Commerce Secretary Wilbur Ross was discussing the upcoming Census.
  • He and Trump want to have a question on the Census form that requires anyone filling out the form to state whether or not they are a legal American citizen.
  • Sounds logical, the Census is supposed to count the number of citizens living everywhere in the country, it is not supposed to count illegal immigrants as citizens and the responses of illegal immigrants should not be used to establish Congressional representation, a main function of the Census.
  • Of course, Ocasio-Cortez does not see it that way since she, as always, she cares more about illegal immigrants than her own legal citizens and the proper execution of the Constitution. 
  • Specifically, “Mr. [Senator] Kobach later emailed to you on July 14 writing that the lack of the citizenship question ‘leads to the problem that aliens who do not actually reside in the United States are still counted for congressional apportionment services. Of course they do reside in the United States. They reside in my district. They’re my constituents.”

So ignorant, so wrong. No Congresswoman, they are not your constituents. Your constituents are American citizens who were born here or who came here and followed the rules to become citizens. She needs to take a civics class to understand who are criminals, who can and cannot vote, and how the Constitution is structured to guarantee the rights and freedom of real citizens, not illegal and thus, criminal immigrants. 

2) Many times she seems to exhibit ADD symptoms, veering aimlessly from point to point or not being able to stay on topic. It is tough to say whether she has a focus problem or so wants to make another point, unrelated to the current discussion, that she jumps to another topic altogether, and most of the time totally misunderstanding either the topic at hand to the topic she jumps to.

Combining this lack of focus with her tendency to make up number and realities, is really comical and sad in that she is actually a member of Congress:

  • Former Wells Fargo CEO Tim Sloan was recently in front of Congress, trying to explain how his company,Wells Fargo,had screwed up so badly in any number of different areas regarding banking topics.
  • Certainly a legit topic for Congress to investigate given that Wells Fargo had gone wild in signing up its customers for services and products these customers did not want it did not know that Wells Fargo employees had enrolled them into without their knowledge.
  • But out of nowhere,on a totally unrelated topic, a topic that turned out to be a non-reality, Ocasio-Cortes accuses Sloan of financing companies that make cages to house illegal immigrant children: "Why was the bank involved in the caging of children and financing the caging of children to begin with?" Ocasio-Cortez asked, in a reference to Trump’s zero-tolerance immigration policy, which resulted in separations of adults suspected of criminal activity from the minors who accompanied them (even though Democrat Barack Obama had done the same thing).
  • She continued to ramble on this unrelated topic that was not on the committee's agenda: "You were financing, involved in debt financing in CoreCivic and GEO Group, correct?"
  • But she was wrong since in a public statement, CoreCivic said her assertions were dead wrong: "We don’t provide housing for any children who aren’t under the supervision of a parent," the spokesperson said. "We also don’t operate shelters for unaccompanied minors, nor do we operate border patrol facilities. Any assertions to the contrary are patently false and misinformed."
  • Geo Group was even more brutal in their rebuttal of her false claims: "This is a deliberate lie driven by an agenda aimed at abolishing ICE, knowing that we have nothing to do with passing, setting, or advocating for or against immigration laws or policies. Our company has never managed facilities that house unaccompanied minors, and we have played no role with policies related to the separation of families. In fact, our Karnes Family Residential Center allows for families to be cared for together and was established by the Obama Administration in 2014. The contractual services we provide for ICE today are no different than the services we provided for eight years under the Obama Administration.”
  • Sloan himself denied her accusations.
  • But not content to make a fool out of herself on the cage idiocy and falsehood, she went on to blame the bank for climate change saying the bank was "responsible for the damages incurred by climate change" because of its financing of fossil fuel companies, such as reinvestment costs.
It is really tough to take her seriously. She throws out statements that she claims are facts that are wrong. She cannot stay on topic, just going off topic to pontificate on other nonsense that she usually gets wrong. So sad that she actually votes on legislation, legislation that she probably doesn't understand or care to understand given her scatterbrained performance to the press and in Congressional hearings.

3) Following up on the ADD theory, sometimes she really needs to follow an old adage: “Better to remain silent and thought ignorant than to speak up and remove all doubt.” She would look so much smarter if she would just not talk. More importantly, not talk at the wrong time and saying the wrong thing.

Unfortunately, there was a recent mass shooting in New Zealand where many Muslims were killed by a deranged person while at their mosques:

  • It was a horrible, horrible incident that makes you shake your head. 
  • Many people expressed their sincere remorse and sent hopes and prayers to the families who lost loved ones and the survivors.
  • There is absolutely nothing wrong with providing emotional support to those in need at a difficult time in their lives, it is the decent, humane thing to do.
  • Unless you are Ocasio-Cortez who could not let it go and decided to interject her political views into this delicate situation in a gross and self serving way.
  • She tweeted out the following tweet while the hurt and anguish was still fresh:” At 1st I thought of saying, “Imagine being told your house of faith isn’t safe anymore. But I couldn’t say “imagine.” Because of Charleston. Pittsburgh. Sutherland Springs. What good are your thoughts & prayers when they don’t even keep the pews safe?”
  • Again, please shut up, if you have no human decency to keep your political aims quiet during this time than you do not deserve to hold any kind of leadership role.
  • While she thought giving thoughts, prayers and support to these folks was useless many others around the world disagreed with her:
  • Dana Loesch of the NRA: “Pretty sure thoughts and prayers isn’t anyone’s phrase, and prayer especially (which you mocked earlier after what happened in a house of prayer?) is a real action, a petition to, a conversation with, God — in this case, to request protection, comfort for those suffering.”
  • Tim Young: “If one of your first 1000 thoughts after a horrific mass shooting is to go dunk on a person, a religious belief or an organization on Twitter, you should delete your account.”
  • Queen Elizabeth issued a statement saying that her “thoughts and prayers are with all New Zealanders.”
  • The Pakistan prime minister said that “prayers go to the victims and their families.”
  • A senior Pakistan official, Saeb Erekat, offered his “prayers and tears” for those affected.
  • The foreign minister of the United Arab Emirates said his “thoughts and prayers are with the families of the victims.”
So a lot of more important, smarter, and more worldly people knew to offer support to other humans when that is what is needed. Ocasio-Cortez is not nearly as important, not nearly as smart, and not nearly as compassionate as these folks. 

Again, Congresswoman, better to remain silent and thought ignorant than to speak up and remove doubt. Whether that is jumping into a mourning world, not understanding the simple definition of the unemployment rate, not knowing what the three branches of our government are, not understanding a simple Pentagon audit report, etc., etc just keep quiet.

Unfortunately she doesn't know how to remain silent and that provides fresh idiocy, insanity, and fodder for this theme in this blog. All of which reminds us how broken our election processes have become if this type of person actually gets to vote on Federal legislation.

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Sunday, March 29, 2015

March, 2015, By The Numbers, Part 1: Social Security Going Bust, Pentagon Losing Weapons, and More

On a semi-regular basis we revisit the theme ”by the numbers” just to check in on the state of the country and political class using actual realities and their underlying numbers, not the spin or lies from our politicians. You see, politicians usually have nothing to gain by looking at reality and the numbers since they are more than likely to have screwed up reality and our lives in the first place.

That is why they would rather lie and deceive than tell the truth. But that approach can be destroyed by looking at the hard numbers behind the mess they have created. I once worked for a boss whose favorite saying was: "There is nothing more devastating to an opinion than the right number.” And that is what we try to do with this theme, devastate politicians’ opinions by looking at the right numbers.

So let’s take a look at the numbers that have recently cropped up and again prove that the political class in America continues to be one of the worst set of people to ever hold office, given the state of the country, the many ways they screw up our wealth and government functions, and their inability or non-desire to step up and tell the truth.

1) One can really tell how inept our current politicians are by looking at how incompetently they operate government functions. According to a recent Social Security Administration (SSA) inspector general audit report, there are 6.5 million active Social Security numbers on file that indicate the owners of those numbers are over 112 years old but there is no record of their death. Given the reality that the 2013 Census update shows that there are just over 6 million living Americans in the country who are over 85 years old, it is highly doubtful there are 6.5 million Americans who are over 112 years old, the numbers make no sense.

But it does make sense if you consider the very real possibility that these Social Security numbers are still active because they are being used fraudulently to rip off the SSA and the American taxpayer. It could be that the sons and daughters of deceased holders of these SSA numbers are still receiving the SSA checks of their dead relatives. It could be that illegal aliens are using the numbers to get benefits or get jobs using dead folks’ SSA numbers. It could be that organized crime is using the numbers to get disability or retirement checks fraudulently. Whatever the cause, you can be sure that the American taxpayer is being ripped off. 

A couple of comments here:
  • Why did it take an auditor’s report to figure this out? 
  • Is the SSA so screwed up that they had no idea that millions of people could be ripping off the system?
  • Didn’t anyone there think to compare the characteristics of their list to the Census findings?
  • According to Wikipedia, there are a grand total of sixteen Americans confirmed to be over 110 years old living in the country today? Didn’t anyone at the SSA think that might be an easy and important number to look up?
Unbelievable incompetence that could be avoided with some simple number analysis. Here is another simple idea: find out who those sixteen Americans are who are over the age of 110, identify what their Social Security numbers are, and then deactivate the remaining 6.5 million numbers that the inspector general identified and then sit back and see who yells? Whoever yells is likely a criminal in some respect who can then be arrested for fraud. 

The others will likely melt away once they know the scam is over, saving the American taxpayer a lot of wealth. But even simple plans like these are too much for the political class to grasp so expect the 6.5 million number to hang around for a long time.

2) According to a recent Washington Post article, the Pentagon also has a numbers problem in that it is unable to account for $500 million worth of military aid given to the Yemeni government. Given that the Yemeni government was recently overthrown it is highly likely that the half a billion worth of taxpayer funded weaponry is now in the hands of one of three terror groups operating in Yemen: ISIS, Al Qaeda, or Iranian supported terrorists. Half a billion dollars, a nice round number used to fund terrorists.

3) The Heritage Foundation recently did some real nice number analyses regarding the Federal budget which should shake up a lot of people who have an opinion but no data to support their opinion. Let’s start with the fallacy that the wealthy in this country do not pay enough in taxes. 

Using Federal government tax data from 2011, the latest data available, Heritage’s analysis found that:
  • The top 10% earners in this country pay a whopping 68% of all Federal income taxes. 
  • The top 1% of earners pay more than a third of all Federal income taxes (35%).
  • Another way to look at the numbers is that the top 10% of earners earn 46% of the earnings in this country but pay 68% of all Federal income taxes, a tax to earnings ratio of almost 1.5, i.e. their share of taxes paid is 50% more than their share of earnings earned.
  • The top 1% of earners earn 19% of all earnings but pay 35% of all Federal income taxes, a tax to earnings ratio of 1.84, i.e. their share of taxes is 84% higher than their share of earnings earned.
  • The bottom 50% of earners earn 12% of earnings but pay only 3% of all Federal income taxes so their tax to earnings ratio is .25, i.e. their share of taxes is 75% lower than their share of earnings and their tax to earnings ratio is more than seven times lower than the ratio for the top 1% earners.
Given these numbers and results, it is pretty hard to make the case that the wealthy, higher earners do not pay their fair share of Federal income taxes. These numbers just reaffirm that we do not have an under taxation problem in this country, we have a Federal government over spending problem.

Another set of numbers to prove that there is not an under taxation problem in this country is to look at the wealth of Bill Gates, the wealthiest American, and the Federal government’s budget. The Federal government is spending money at the rate of about $10.4 billions per DAY. According to Forbes latest analysis, Bill Gates is worth about $78 billion. 

Rather than tax Bill Gates at a higher rate, let’s get crazy and say that somehow the Federal government confiscated everything he owned, about $78 billion worth of wealth. If we divide his wealth by the run rate of Federal spending we see that Gates’ entire wealth could operate the Federal government for just over seven days. His entire wealth, seven days, eight days tops of government operations.

If you just raise his tax rate, the increase in taxes collected would not even operate the Federal government for a few hours. We have a government that spends too much, we do not have a government that does not tax enough, the numbers do not lie.



4) Let’s dive deeper in the Heritage analysis, starting with Social Security numbers. The following numbers show the annual Social Security Administration cash flows over the years, adjusted for inflation, where a surplus means that in that year they collected more in Social Security taxes than what was paid out and deficit years means more was paid out than what was collected in Social Security taxes:

INFLATION-ADJUSTED DOLLARS (2014)



Source: Social Security Administration.

The numbers are pretty clear:

  • Up until 2009, the cash flow of the SSA was positive, i.e. it collected more in Social Security taxes than what it paid out in Social Security benefits, a good thing. 
  • But starting in 2010, that surplus turned negative with the deficit quickly growing to a whopping $79.7 billion in just five short years in 2014.
  • While the SSA forecasts a slight reduction in that deficit.negative cash flow in the next few years, given the current set of rules, numbers and realities of the Social Security system, deficits will soon skyrocket, reaching an annual deficit of $337 billion by 2032, four times higher than it is today.
This is just more proof that the Social Security “trust” is an accounting and numbers trick foisted on us by the political class. There is no trust fund. There is no pile of cash or stack of gold bars and sheets of Google stock that can be used to offset the growing negative cash flow. The trust fund is an accounting trick that the politicians used to get access to Social Security wealth long ago, leaving us with growing Social Security deficit numbers that will very soon be unpayable under the current benefit scheme. The numbers do not lie even if the politicians do when it comes to Social Security.That will do it for political numbers today, more to follow tomorrow. Today we learned that dead people still get Social Security benefits, the Pentagon lost half a billion dollars worth of military gear, the wealthy already pay most of our taxes, and Social Security is quickly becoming insolvent. The numbers do not lie.






Monday, October 7, 2013

October, 2013, Political Class Insanity, Part 6: A Country Founded By Geniuses and Run By Idiots

Please note: Nancy Pelosi recently made the outrageous comment that there was no waste to be cut in the Federal govnerment, i.e. EVERY dollar the Washington political class spends is essential to our country. Keep this insanity in mind as we go through this month's polticial class insanity, you will quickly see that she is very much out of touch with the reality of today's wasteful federal government.

This will be the sixth and final installment in this month’s political class insanity where we review the lunacy that continues to be created by the nation’s political class, the worst set of politicians to ever hold office in the history of this country. I thought we would need more than six posts to cover it all this month but it looks like a lot of the insanity has been related to the impending disaster that is Obama Care and the tired, old calls for shredding the Second Amendment. We will cover them in a separate series of posts on their own special brand of insanity.

1) In early August, 2013, Commissioners in Weld County, Colorado unanimously voted to make 'North Colorado' the 51st US state. The Republican board hopes to secede from the state in protest of laws passed by the Democratically controlled state legislature this year. The initiative will be added to the ballot this November. More than 11,000 people have liked the 51st State Initiative's Facebook page.

The 51st State website claims that their objective is simple. "We just want to be left alone to live our lives without heavy-handed restrictions from the state capitol," read a post on the website: "The concerns of rural Coloradans have been ignored for years," William Garcia, chairman of the Weld County Commissioners, said in a statement. "The last session was the straw that broke the camel's back for many people. They want change. They want to be heard.”

Think people are getting fed up with the American political class? And these are not the only Americans who want out from underneath what the believe is an ever growing government and ever shrinking set of freedoms. According to the Washington Times, at least three other western counties are trying to do the same thing: Cheyenne, Sedgwick and Yuma also plan to place the 51st state referendum on the fall ballot.

Secession drives are underway in northern California and in rural Maryland. Yes, something might be ready to give, it only takes so long until you realize that America’s politicians only care about their own self enrichment, their perpetual reelection campaigns, and have no ability to resolve the major issues of their times. 

Sounds like these folks who want to form their own state have reached the same conclusion that are term limits effort reached: really….how much worse could it get if you had your own state? (www.howmuchworsecoulditget.com)

2) CBS News reported early this month that the Department of Defense was hurriedly  spending taxpayer wealth on televisions, playground equipment, violins, clarinets, a volleyball court, and other non-defense things so that they would not see their budget decreased next year, the infamous “spend it or lose it approach” to budget management. And according to CBS, this insane wasteful spending of taxpayer wealth is not confined to just the Department of Defense, it is rampant across all Federal agencies and entities, the news report just focused on this one department and its idiotic spending spree.

3) The Export-Import Bank is a Federal government entity which is supposed to provide low cost loans to foreign entities who use those loans to buy American made goods. It is a blatant form of political cronyism, using American taxpayer wealth to help out the profits of large American companies.

If a potential foreign buyer needs financing help to buy goods from an American company, than that company and its shareholders should be the ones to provide the financing and assume all of the risks of financing. The American taxpayer should not be the lender of last resort.

But it is actually worse than this. According to an article in the Washington Free Beacon this past summer, a whopping 83% of the bank’s loans in 2012 went to the customers of only one company: Boeing. 83%, tell me that the Boeing airline company is not getting a free ride on the American taxpayers’ dime. The loans go to foreign airlines who get low interest rates to purchase Boeing airplanes.

Besides the blatant cronyism of this swindle, there are two other major problems. First, domestic airlines like Delta and United do not get the same deals from the Export-import Bank. Thus, ironically, their market competitiveness against foreign airlines is diminished by our own Federal government, insanity. Second, would it not be better to invest that money in loans to domestic companies and domestic households rather than foreign companies? Would it not be netter to just return that money to the taxpayers so we could decide how to expand the economy with our own money?

Oh, by the way, according to the Open Secrets website, Boeing ranks 83 out of over 20,000 entities that have made recent contributions to politicians’ election campaigns ($3.5 million) and 12 out of 4,369 companies when it comes to lobbying expense (almost $32 million in lobbying expense in the past two years.) Any doubts why the political class supports the continuation of the Export-Import Bank when over 80% of its budget supports Boeing?

4) So, who is doing good in this lousy economy? Consider some recently releases of U.S. Census data: 


  • Between 2000 and 2012 median household incomes for the nation as a whole dropped 6.6% — from $55,030 to $51,371. 
  • But wait, the income of the typical D.C. household rose 23.3% between 2000 and 2012 to an inflation-adjusted $66,583, according to the Census Bureau’s American Community Survey.
  • The Washington, D.C. metro area — which includes the surrounding suburbs in Maryland, Virginia and West Virginia — has it even better, with a median household income of $88,233 that ranks highest among the U.S.’s 25 most populous metro areas. 
  • Tampa, Florida’s median income, by contrast, is under $45,000,almost a whopping 50% less than the D.C. median income.
Thus, if you are a lobbyists, politicians, political crony, or just fortunate enough to live in the D.C. area, this is a great economy. If you are none of these, than not so great. Maybe that is why the Washington political class has not moved to fix what ails the vast majority of the country, they are not feeling the pain of falling incomes, high unemployment, high under employment, etc.


5) We will close this month’s insanity with a set of truisms that popped up in my email. They are attributed to comedian Jeff Foxworthy but I have no idea if that is true. What is true is the frustration and insanity that the following realities are causing to most Americans, realities and insanity that are courtesy of out of touch politicians:

If you can get arrested for hunting or fishing without a license, but not for entering and remaining in the country illegally…

If you have to get your parents’ permission to go on a field trip or to take an aspirin in school, but not to get an abortion…

If you MUST show your identification to board an airplane, cash a check, buy liquor, or check out a library book and rent a video, but not to vote for who runs the government…

If the government wants to prevent stable, law-abiding citizens from owning gun magazines that hold more than ten rounds, but gives twenty F-16 fighter jets to the crazy new leaders in Egypt…

If, in the nation’s largest city, you can buy two 16-ounce sodas, but not one 24-ounce soda, because 24-ounces of a sugary drink might make you fat…

If an 80-year-old woman or a three-year-old girl who is confined to a wheelchair can be strip-searched by the TSA at the airport, but a woman in a burka or a hijab is only subject to having her neck and head searched…

If your government believes that the best way to eradicate trillions of dollars of debt is to spend trillions more…

If a seven-year-old boy can be thrown out of school for saying his teacher is “cute,” but hosting a sexual exploration or diversity class in grade school is perfectly acceptable…

If hard work and success are met with higher taxes and more government regulation and intrusion, while not working is rewarded with Food Stamps, WIC checks, Medicaid benefits, subsidized housing, and free cell phones…

If the government’s plan for getting people back to work is to provide incentives for not working, by granting 99 weeks of unemployment checks, without any requirement to prove that gainful employment was diligently sought, but couldn’t be found…

If you pay your mortgage faithfully, denying yourself the newest big-screen TV, while your neighbor buys iPhones, time shares, a wall-sized do-it-all plasma screen TV and new cars, and the government forgives his debt when he defaults on his mortgage…

If being stripped of your Constitutional right to defend yourself makes you more “safe” according to the government… you might just be living in a nation that was founded by geniuses but is beyond doubt run by idiots.

Such is the insanity in America today, brought to you in an ever increasing dosage by the entrenched American political class. If you are just as tired of it as the rest of us, please join the effort to impose term limits on this insane bunch of loons by going to our Term Limits Now website:

www.howmuchwosecoulditget.com

Because really…how much worse could it get?

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



Tuesday, January 18, 2011

Higher Taxes = Fewer Residents? Who Would Have Thought!

It has been interesting to see some of the early results being published from the 2010 Census. Of particular interest were some results published in the January 3, 2011 issue of Businessweek Magazine. The article listed out all of the states that would be gaining or losing seats in the House Of Representatives as a result of their population going up or down from the last Census in 2000.

These results raise an interesting question: is it possible that those states that gained population and thus, additional representation in Congress, are also the states that place the lowest tax burden on their residents?  In other words, do higher state taxes encourage residents of that state to move elsewhere for a better life style as a result of lower taxes elsewhere?

One analysis approach is to look at the correlation between House seats lost or gained and the tax burden in each of those states. One way to that is to use the latest state-by-state results from the Tax Foundation. The Tax Foundation published their latest annual results  from their State Business Tax Climate Index in late 2010. Their index rank orders each state along five tax parameters, corporate income tax, personal income tax, state sales tax, state unemployment tax, and property tax. After ranking each state along each of these five taxes, they produce an overall index for each state.

Their overall index goes from 1 to 50. The state with an overall index of 50 is deemed by the Tax Foundation to place the heaviest tax burden on its residents. The state with an index value of 1 is deemed to place the lightest tax burden on its residents. Thus, if you combine the Census results from the Business Week article with the Tax Foundation work, you come up with the following:

States Losing Two Congressional Seats:
- New York - Index = 50
- Ohio - Index = 46
Average Of States Losing Two Seats = 48

States Losing One Congressional Seat:
- Illinois - Index = 23
- Iowa - Index = 45
- Louisiana - Index = 36
- Massachusetts - Index = 42
- Michigan - Index = 17
- Missouri - Index = 16
- New Jersey - Index = 48
- Pennsylvania - Index = 26
Average of States Losing One Seat = 32

States Gaining One Congressional Seat:
- Arizona - Index = 34
- Georgia - Index = 25
- Nevada - Index = 4
- South Carolina - Index = 24
- Utah - Index = 9
- Washington - Index = 11
Average Of States Gaining One Seat = 18

Florida Is Gaining Two Seats - Index = 5

Texas Is Gaining Four Seats - Index = 13

A few observations:
  • The Illinois index rating is now probably much worse than when the Tax Foundation did their report since the Illinois legislature significantly raised corporate and personal income taxes within the last week with personal income taxes going up 66%.
  • New York lost another two seats this time around and according to the article, it is down from a high of 45 Congressional seats as recently as 1940. The 27 seats are the lowest amount of seats for New York since 1810.
  • While Louisiana lost a Congressional seat, there is a good chance that some of that loss was do to the lingering effects of Hurricane Katrina.
  • New Jersey got as high as 48, after being at 50 for a number of years, only because it lowered its highest personal income tax rate, an action that would have affected only a very small number of New Jersey residents.
The obvious conclusion and correlation is that the higher your tax burden, the more population you lost, as measured by the change in Congressional representation. It is not a perfect correlation but it is a strong correlation.

This analysis represents a high "correlation" of high tax burden to lost population, you would have to go much deeper to see if there was a true "causation" relationship, namely high taxes "cause" population loss. For example, if you overlay the results above on a map of the U.S., you could make an inference that those states gaining population tend to be in the southern, warmer part of the country (with the exception of Louisiana which is likely affected by Hurricane Katrina). Those losing population tend to be in the northern, colder part of the country so maybe Americans just want to be warmer.

However, I would maintain that the taxes are much more causation than the weather. Many of the coldest states in the country, Minnesota, the Dakotas, Wisconsin, Montana, Maine, Vermont, New Hampshire, etc. did not gain or lose Congressional seats. If weather was a driving factor vs. taxes, one would have expected at least some of these cold states to have lost seats. Thus, I would assume that taxes and not warmth are much more important in driving population shifts.

Another way of looking at the data is to overlay the Congressional results above with the two major political parties, the Democrats and Republicans:
  • If you look at the past five Presidential elections, every one of the states losing population and Congressional seats, except for Louisiana, would be considered blue states or Democratic states. Again, Louisiana's status might have been unduly influenced by Katrina.
  • Five out of the eight states that gained Congressional seats would have been considered red states or Republican states.
  • Florida would have been one of those three states not considered Republican but since the last Presidential election, the state of Florida has a Republican governor, both houses of the state legislature are controlled by the Republicans, in some of the past five Presidential elections Florida did go Republican, and I believe that Republicans picked up seats in the Florida delegation to the House Of Representatives while holding the Republican Senate seat it already had. In other words, Florida would probably now be considered a red state.

Thus, again we see a very strong correlation, this time between high population lost or gained and political party. Those states with a strong Democratic  political influence tend to be the higher taxing states and the states losing people. Those with a strong Republican presence tend to be the lower taxing states and the states gaining people.

Thus, a very strong case can be made for a very simple premise: human beings like to keep what they earn and are likely implementing this premise with their feet, relocating to states where they can keep the results of their hard work. I know that is what my family did. We moved out of New Jersey in 2005, when its tax index rate a horrendous 50, and moved to Florida. In 2005, more than five years ago, we were paying about $12,000 a year in New Jersey property tax, a taxation amount that is likely much higher than it was over five years ago. We currently pay less than $4,000 a year in property taxes in Florida, a savings of at least $8,000 a year. In Florida, we also have no income tax to pay vs. a pretty substantial income tax that we would have to pay in New Jersey.

Both myself and my wife did not necessarily want to leave New Jersey. We both grew up there, we spent most of our careers there, and we left behind friends and family. However, the price to stay put was just too much, probably in excess of $10,000 a year once you take in account all of the tax implications. You can live a much better live, a much freer life, if you have an extra $10,000 in your pocket.

Which gets us to the overall lesson from all of this analysis. The higher the tax burden, the less amount of freedom an American has.  You cannot separate financial freedom from political freedom, they go hand in hand. The more you pay into the government, the less money you have for you and your family. You have less money to send your kids to a better school. You have less money to possibly start a business. You have less money to save for retirement. You have less money to donate to your favorite charity. You have less money to just enjoy your life. You have less freedom.

And it is not as if the government confiscates your hard earned money, money that you are now not free to spend as you like, and uses it for great programs that have a benefit to you and your family. It is typically wasted in ways to numerous to list here.

That is why Step 1 from "Love my Country, Loathe My Government" is so important. Step 1 would reduce the size of the Federal government by 10% a year by five years. The reasons for this goal would be to reduce what government does so that the political class and the government it runs work on a smaller set of more important issues, and hopefully by focusing on less getting more done.

Also, if you reduce the size and waste of government, you can eventually return those unused and unwasted taxes to the American people who have shown that they will look for the best economic deal for themselves and their families, and more freedom, even if it means moving to Texas, Florida, and other less tax heavy states. Who would have thought?






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:

http://www.cato.org/
http://www.robertringer.com
http://realpolichick.blogspot.com
http://www.flipcongress2010.com/
http://www.reason.com/
http://www.repealamendment