The anniversary of an awful day in American history 108

Yesterday was the anniversary of the start of a very bad thing.

The income tax.

Our creed is: Taxation is theft and income tax is the worst of all taxes.

So we read the following with sad sympathy.

It is from a column at Townhall by  Daniel J. Mitchell of the Cato Institute:

On October 3, 1913, one of America’s worst Presidents, Woodrow Wilson, signed into law the Revenue Act of 1913, which imposed the income tax.

The top tax rate was only 7 percent, the tax form was only 2 pages, and the entire tax code was only 400 pages. And a big chunk of the revenue actually was used to lower the tax burden on international trade …

But just as tiny acorns become large oak trees, small taxes become big taxes and simple tax codes become complex monstrosities. And that’s exactly what happened in the United States.

We now have a top tax rate of 39.6 percent, and it’s actually much higher than that when you include the impact of other taxes, as well as the pervasive double taxation of saving and investment. And the relatively simply tax law of 1913 has metastasized into 74,000 pages of Byzantine complexity.

Not to mention that the tax code has become one of the main sources of political corruption in Washington, impoverishing us while enriching the politicians, lobbyists, bureaucrats, and interest groups. Or the oppressive and dishonest IRS.

However, even though I take second place to nobody in my disdain for the income tax, the worst thing about that law is not the tax rates, the double taxation, or the complexity. The worst thing is that the income tax enabled the modern welfare state.

Yes, yes. We heartily agree. Income tax allows redistribution – the robbing of Peter by government to hand out his money to Paul.

The income tax launched socialism on the Western world. A terrible and ultimately fatal disease of the body politic.

Before the income tax, politicians had no way to finance big government. Their only significant pre-1913 sources of revenue were tariffs and excise taxes …

Once the income tax was adopted, though, it became a lot easier to finance subsidies, handouts, and redistribution. … As the decades have passed, the Leviathan state in Washington has grown. And in the absence of genuine entitlement reform, it’s just a matter of time before the United States morphs into a bankrupt European-style welfare state.

And as government becomes bigger and bigger, diverting more and more resources from the productive sector of the economy, we can expect more stagnation and misery.

That’s why October 3 is an awful day in American history.

Posted under Commentary, Economics, government, History, Socialism, United States by Jillian Becker on Friday, October 4, 2013

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US economy “hanging by a thread” 77

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.” – Barack Obama in 2006.

This is by Arnold Ahlert, from Front Page:

The rollout of ObamaCare and the subsequent government shutdown have engaged the attention of millions of Americans. Unfortunately, both issues are inconsequential compared to what will likely be another battle over raising the debt ceiling. Even more unfortunately, most Americans have little grasp of the economic issues that have brought us to the precipice for the second time in two years.

Most Americans do know the nation is $16.7 trillion in debt, but far fewer understand the implications of such debt. In fact, precious few Americans even know which nation underwrites more of our debt than any other. The overwhelming majority believes it is either China or Japan. The overwhelming majority couldn’t be more wrong. The largest underwriter of U.S. debt is the United States of America, courtesy of the Federal Reserve.

The Fed’s Keynesian-economics-on-steroids buying spree is called “Quantitative Easing” (QE). It consists of spending $85 billion per month, with no end in sight. Of that total, $40 billion is spent on mortgage-backed securities and $45 billion on longer-term Treasury securities.

Where does the Fed get the money to buy these securities? It “prints” money to buy them. To put this in household terms, the Fed is essentially paying down one credit card – by charging it to another credit card. During the Obama administration, QE, along with Congress spending additional revenue we don’t really have, has increased the national debt by an additional $6 trillion. QE has also debased the currency, since creating more currency makes each piece of currency worth less – on the way to becoming worthless.

The Fed has coupled this idea with a Zero Rate Interest Policy (ZIRP), thoroughly convinced that both agendas will “stimulate” the economy, because borrowing money is cheap, and the new money has to go somewhere. That “somewhere” has been the stock market, which has been pushed to record highs as a result. Fed Chairman Ben Bernanke and his fellow Keynesians believe that pumping up the market will result in a “trickle down” effect, as those Americans who feel wealthy with regard to their stock portfolios will spend money and create new jobs. The Fed has pursued QE in one form or another for five years.

During those same five years, the official unemployment rate has never dipped below 7.4 percent, according to the Bureau of Labor Statistics (BLS). That number is a fraud because it fails to acknowledge that we have lowest workforce participation rate in 35 years, and BLS doesn’t count the people who have given up looking for work as unemployed. If the workforce participation rate were the same as it was just before the financial crisis hit in 2008, the unemployment rate would be approximately 11.3 percent.

Furthermore, despite the nation being in a so-called recovery since 2009, we have record numbers of Americans receiving food stamps, record numbers collecting disability checks, and a record number of Americans living in poverty. Americans’ annual household income has also declined by 4.4 percent during the recovery, which is worse than the 1.8 decline that occurred during the recession.

As for inflation, the Fed claims it is under control. Americans might argue otherwise, considering the reality that food and fuel prices have gone up substantially under this administration. Yet many of those same Americans are unaware of the reality that food and fuel prices are not included when the government calculates the inflation rate. …

In short, the Fed’s QE approach is nothing less than disastrous. … It has engendered a monstrous amount of national debt, fueled by the record-setting, trillion dollar-plus annual deficits needed to pay for it. And despite the Fed’s money printing prowess, even they can’t pony up the kind of revenue necessary to underwrite the entire effort.

Thus we tax, and we do borrow from other nations.

On the tax side of the equation, those who pay them have done yeoman’s work. For the first 11 months of FY2013, the federal government received a record-setting $2.47 trillion in revenues. Yet they spent all of it, plus an additional $755 billion during the same period. Thus, on the borrowing side of the equation, we are constantly adding to our national debt, and have again “maxed out” our spending limit, reaching the so-called debt ceiling.

Yet even as we constantly bump up against a new debt ceiling, we continue paying interest on the debt we’ve already accumulated. In 2012, the interest on that debt totaled $360 billion. Like the minimum payment on a household credit card, that massive amount of spending does nothing more than maintain the debt at its present levels. Nothing is being paid down.

The average interest rate the Treasury paid on U.S. debt over the last 20 years is 5.7 percent. Americans might tolerate paying 7 percent of every dollar collected just for interest, but what about 10 percent, or 20 percent – or more? Not for more Social Security, Medicaid, Medicare, military, or any other government program. Just interest. Just to maintain. How many American families could sustain themselves if 20 percent of their income or more did nothing but keep their credit card debt right where it is now? And 20 percent may be an optimistic number. …

An American politician vividly expressed the consequences of continually raising our borrowing limit and accumulating more debt as a result:

The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure,” he said. “It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.

That politician was Barack Obama in 2006.

Barack Obama in 2013? ”Raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy.” Except that it does. Every time we have raised the debt ceiling, our debt level has increased.

Thus, “insane” Republicans are demanding concessions for raising the current debt ceiling. Those concessions include a one year delay of the new and massively expensive (more than triple its original cost estimate) healthcare bill, a blueprint for tax reform, medical malpractice reform, approval of the Keystone pipeline, and an increase in offshore drilling for energy. The president’s Twitter response is telling. ”I won’t negotiate on anything when it comes to the full faith and credit of the United States of America.”

Due to unprecedented levels of government spending by both parties … the full faith and credit of the United States of America is hanging by a thread. Either we stop engaging in that insanity or we are finished as a nation. Politicians lie. Math does not.

What is the point of calling it “the debt ceiling” if it is continually being raised? For the Left, the sky’s the limit.

And if another Alinskyite socialist, another incompetent, another affirmative action candidate, another economics illiterate – such as Hillary Clinton – is elected to the presidency in 2016, the thread will surely snap.

Posted under Commentary, Economics, United States by Jillian Becker on Thursday, October 3, 2013

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Wouldn’t it be luverly? 61

Little poster from

What if We Had a Government Shutdown and Nobody Noticed or Cared?

by Daniel J. Mitchell of the Cato Institute.

Posted under government, United States by Jillian Becker on Wednesday, October 2, 2013

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Why not be cruel? 104

Why do believers ache to argue with atheists? Why does it bother them that others do not believe what they believe? Especially if they have radio shows and can propound their beliefs to their hearts’ content.

Although Dennis Prager is religious (an observing Jew), there was a time when we considered him intelligent – which is a way of saying, he agreed by and large with our political views. Not so lately. And today he has produced an article which has us laughing aloud.

He calls it a response  to Richard Dawkins, to statements the scientist made in an interview with CNN. He also intends to make a general answer to atheism. His theme is that “God” is necessary to humankind, because without belief in such a being we would not know good from bad.

We greatly respect Richard Dawkins as a proponent of atheism who is listened to by millions. He has probably convinced many believers that they were wrong. We enormously enjoy his highly readable books on evolution. We do, however, have our reservations about him. We disagree with his ill-thought-out political views – fuzzy leftist notions. We excuse these to some extent on the grounds that he is concentrating on science and so hasn’t bothered to inform himself adequately about political issues. Whether that’s true or not, of course we don’t know. We also think he is under-informed on the religions he has written about. But that doesn’t much matter. (We review his book The God Delusion here.)

Prager complains that Dawkins will not debate with him. Since what follows is Prager’s argument, we can see why. Prager makes no good case to answer. But we will comment on what he says to show what’s wrong with it.

This past Friday CNN conducted an interview with Richard Dawkins, the British biologist most widely known for his polemics against religion and on behalf of atheism.

Asked “whether an absence of religion would leave us without a moral compass,” Dawkins responded: “The very idea that we get a moral compass from religion is horrible.”

This is the crux of the issue for Dawkins and other anti-religion activists – that not only do we not need religion or God for morality, but we would have a considerably more moral world without them.

This argument is so wrong – both rationally and empirically – that its appeal can only be explained by a) a desire to believe it and b) an ignorance of history.

That’s when we started laughing. Prager the believer, accusing atheists of believing what they do or do not only because they want to believe it!

But on we go:

First, the rational argument.

If there is no God, the labels “good” and “evil” are merely opinions. They are substitutes for “I like it” and “I don’t like it.” They are not objective realities.

That’s the rational argument? It implies that at some point  in history – or perhaps at many points – a god has issued definitions of good and evil. Or launched them as forces among us, so they are “objective realities” outside of the human mind.

The religious claim that Jehovah dictated laws, in words, to Moses; that God the Father, through Jesus, gave instructions on moral behavior; that Allah told Muhammad through the Archangel Gabriel all that has been recorded as his will and law in the Koran. What sane adult can believe that such events actually happened? The plain fact must be that, since we have the written laws of Judaism, the records of Jesus Christ’s sayings,  and the Koran, at some points in time human beings formulated those statements of morals and law, and wrote them down. To believe otherwise is laughable.

Laws against murder, theft, the breaking of oaths, adultery, defaulting on contract were common around the eastern Mediterranean and Asia Minor long before the period of Moses. The Hammurabi Code predated the Hebrews’ putative law-giver by at least five hundred years, and while it chiefly deals with punishments for crimes and how disputes should be settled, it assumes the existence of laws on the same moral principles as underlie the laws of Moses. And they were not issued as the commandments of a god. Not to know that is ignorance of history.

Prager persists:

Every atheist philosopher I have debated has acknowledged this. For example, at Oxford University I debated Professor Jonathan Glover, the British philosopher and ethicist, who said: “Dennis started by saying that I hadn’t denied his central contention that if there isn’t a God, there is only subjective morality. And that’s absolutely true.”

The ethicist should get out more. If he hasn’t yet become aware of the power of social conventions, cultural pressures, public opinion –  all in addition to enlightened self-interest, which very much needs to take account of how other people react to one’s self-will –  he has spent too much time closeted in his ivory tower.

And the eminent Princeton philosopher Richard Rorty admitted that for secular liberals such as himself, “there is no answer to the question, ‘Why not be cruel?‘”

Because you may be punched on the nose, Richard.  And if someone is cruel to you, you may understand why cruelty is so widely abhorred as to be kept in most societies as punishment for crime or treatment for enemies.

And why do eminent philosophers choose to forget the moral philosophies that owe nothing to religion? The Stoics. The Epicureans. True, some of them were religious, but few were adherents of a moral religion, and their ethics were not ascribed to a revelation from a god. The religion of ancient Greece was not a moral religion. Nor was that of Rome until the 4th century. Marcus Aurelius (121-180 C.E.) was not a Christian. He was a Stoic. Yet Christians admire him as a good man and a good emperor.

Hear Prager again:

Atheists like Dawkins who refuse to acknowledge that without God there are only opinions about good and evil are not being intellectually honest.

None of this means that only believers in God can be good or that atheists cannot be good. There are bad believers and there are good atheists. But this fact is irrelevant to whether good and evil are real.

To put this as clearly as possible: If there is no God who says, “Do not murder,” murder is not wrong. Many people or societies may agree that it is wrong. But so what? Morality does not derive from the opinion of the masses. If it did, then apartheid was right; murdering Jews in Nazi Germany was right; the history of slavery throughout the world was right; and clitoridectomies and honor killings are right in various Muslims societies.

The Afrikaner nationalists who imposed apartheid on South Africa, justified themselves with reference to their bible. “The sons of Ham must be the hewers of wood and the drawers of water.” They were most of them devout members of one or another of the Calvinist churches.

The Germans who carried out the will of the Hitlerian regime were almost to a man and woman raised in the faith of either Protestant or Catholic Christianity.

The slave traders and slave owners of Europe and America were Christians. The present slave traders and owners in North Africa and Asia are almost all Muslims, as are honor killers everywhere.

So, then, without God, why is murder wrong?

Is it, as Dawkins argues, because reason says so?

My reason says murder is wrong, just as Dawkins’s reason does. But, again, so what? The pre-Christian Germanic tribes of Europe regarded the Church’s teaching that murder was wrong as preposterous. They reasoned that killing innocent people was acceptable and normal because the strong should do whatever they wanted.

Just as Islamic terrorists do now, shouting “Allahu Akbar!”

And those old tribes were not without their gods. Most gods in those bad old days required human sacrifices.

In addition, reason alone without God is pretty weak in leading to moral behavior. When self-interest and reason collide, reason usually loses. That’s why we have the word “rationalize” — to use reason to argue for what is wrong.

What would reason argue to a non-Jew asked by Jews to hide them when the penalty for hiding a Jew was death? It would argue not to hide those Jews.

In that regard, let’s go to the empirical argument.

Years ago, I interviewed Pearl and Sam Oliner, two professors of sociology at California State University at Humboldt and the authors of one of the most highly-regarded works on altruism, The Altruistic Personality. The book was the product of the Oliners’ lifetime of study of non-Jewish rescuers of Jews during the Holocaust.

The Oliners, it should be noted, are secular, not religious, Jews; they had no religious agenda.

I asked Samuel Oliner, “Knowing all you now know about who rescued Jews during the Holocaust, if you had to return as a Jew to Poland and you could knock on the door of only one person in the hope that they would rescue you, would you knock on the door of a Polish lawyer, a Polish doctor, a Polish artist or a Polish priest?”

Without hesitation, he said, “a Polish priest.” And his wife immediately added, “I would prefer a Polish nun.”

That alone should be enough to negate the pernicious nonsense that God is not only unnecessary for a moral world, but is detrimental to one.

At this point one might smile, for the irony of it – but it is no joke. Yes, among the Poles who sheltered Jews during the Nazi occupation there were priests and nuns. But has Prager forgotten that for 2ooo years Christianity has been persecuting Jews? That Poland was a land of pogroms? Does he imagine that priests and monks took no part in them? Is this just forgetfulness or – yet again – ignorance of history?

And what of the Papal and Spanish Inquisitions? Has he forgotten that in exactly the same way “God” tells men anything, he told the Inquisitors that burning people at the stake was good? 

But if that isn’t enough, how about the record of the godless 20th century, the cruelest, bloodiest, most murderous century on record? [?] Every genocide of the last century — except for the Turkish mass murder of the Armenians and the Pakistani mass murder of Hindus in East Pakistan (now Bangladesh) was committed by a secular anti-Jewish and anti-Christian regime. And as the two exceptions were Muslim, they are not relevant to my argument. I am arguing for the God and Bible of Judeo-Christian religions.

Only now he tells us that he discounts Islam. Though why he believes the words of Allah are necessarily less true than the words of Jehovah or Jesus he does not say. Nor does he seem aware that much of the moral law putatively taught by Jehovah was discounted or even contradicted by the Christians’ triune God.  

And we repeat: the Third Reich was not anti-Christian. And Hitler himself was raised a Catholic. As for Stalin, he was thoroughly instructed in the morality of Christianity when he attended a Russian Orthodox seminary.

Perhaps the most powerful proof of the moral decay that follows the death of God is the Western university and its secular intellectuals. Their moral record has been loathsome. Nowhere were Stalin and Mao as venerated as they were at the most anti-religious and secular institutions in Western society, the universities. Nowhere in the West today is anti-Americanism and Israel-hatred as widespread as it is at universities. And Princeton University awarded its first tenured professorship in bioethics to Peter Singer, an atheist who has argued, among other things, that that “the life of a newborn is of less value than the life of a pig, a dog or a chimpanzee” and that bestiality is not immoral.

At last we can agree with Prager! Western universities have become moral cesspools. Not because they are secular, but because they teach socialism, collectivism, egalitarianism, political correctness, environmentalism; and because they deliberately misapply the principle of diversity to race and gender and not to ideas.

Dawkins and his supporters have a right to their atheism. They do not have a right to intellectual dishonesty about atheism.

No charge of intellectual dishonesty has been proved against Dawkins with these shallow arguments.

I have debated the best known atheists, including the late Christopher Hitchens, Sam Harris, Lawrence Krauss (“A Universe from Nothing”) and Daniel Dennett. Only Richard Dawkins has refused to come on my radio show.

If four smart atheists were unable to reason you out of your irrational beliefs, Dennis, why should another have a go? We don’t expect that you would be persuaded by our arguments even if you read them, which you probably will not. But we want to share our amusement with fellow non-believers.

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