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Strong National Economy Critical To Security

February 17, 2011 by Leave a Comment

Congressman Adam Smith, a Democrat and Ranking Member of the House Armed Services Committee, at yesterday’s hearing on the Defense Authorization Request, said this:

And we also need to be mindful of the fact that a strong national economy is critical also to our national security. An out-of-control deficit jeopardizes that economy. So we have to try to make sure that we can live within our means and do the job that we all have been asked to do.

Congressman Adam Smith, your namesake would be proud that you have grasped the seriousness of the ongoing deficit spending that so many of your colleagues have yet to recognize.

Filed Under: Deficit, Economics, Government ·

China Surpasses Japan — No Big Deal

August 16, 2010 by Leave a Comment

China has overtaken Japan as the world’s second largest economy. China’s over $5 trillion economy is now second only to the United States. But considering that the U.S. economy is over $14 trillion it will be a long time before China takes the top GDP spot.

So all the excitement today about China’s economy is just a lot of fuss about nothing. China will have to triple its GDP to overtake the U.S.

And in the meantime the U.S. will not be standing still.

Filed Under: Economics ·

American Savings Rate Increases

July 25, 2010 by Leave a Comment

For decades Americans saved ever smaller amounts of their disposable incomes. In 1980 the savings rate was 10 percent but by 2005 had fallen to minus 0.5 percent.

However, during the recession the rate rose to 1.7 percent in 2007, to 2.7 percent in 2008, and 4.2 percent in 2009. At one point in 2009 the rate hit 5.4 percent.

Some see this as bad for an economy predominantly dependent on consumer spending. But more savings translates into more capital for businesses to expand. Greater savings also provides a cushion for future downturns thus avoiding debt defaults.

More savings will eventually translate into a more robust and sustainable economy and less dependence on foreign investment in the U.S.

Filed Under: Economics ·

Uncertainties over Solar Subsidies

May 20, 2010 by Leave a Comment

Earlier this month I wrote about Spain drastically cutting solar subsidies. Now, because of the Greek economic crisis, Germany has reduced new solar plant subsidies by 16 percent. In June, Italy will likely cut support for new plants by 25 percent. Because of the uncertainties over solar subsidies, it is harder for companies to secure funding for alternative energy projects.

There are very few wind or solar installations that can be profitable without subsidies. Projects that rely on government for funding welfare can expect the lights to go out on the money when budgets are strained.

In most cases it is best to allow alternative energy to proceed on merit. A simple concept but so hard for politicians to grasp.

Filed Under: Economics, Energy ·

The Collectivists versus The Individualists

March 5, 2010 by Leave a Comment

From Paul

The fight nationwide is between the collectivists and the individualists. Does one believe in individual liberty or the rights of the collective. Do your earnings belong to you or to the collective.

The collectivists are concentrated in urban areas and the individualists in the rest of the country.

There is a point of no return when the majority attain a vested interest in protecting their graft from government largess. When they attain a majority, they can pass whatever laws they want to. From the point of no return the miscreants continue to pass laws that scab off the productive side of the economy until the economy suffers a catastrophic occurrence. Then it is chaotic until some new system asserts itself and gains control.

One day it appears like we are on the verge of reaching the point and then the American people come through. The Tea Party movement put a major roadblock in the path of the collectivists. The takeover of the health care system would give enormous impetus to complete control. Health care is such a frightening concern for most people they will tolerate a lot of abuse to have it.

I have an abiding faith in the American people to find the right way. Sometimes it takes a long time and it sure isn’t efficient but sooner or later they get the right one.

Of course the President and the Democrats believe they are so close to having complete control, they are willing to gamble all to achieve it. Even destruction of the Democrat party. The direction looks so purposeful, it looks like destruction of the economy in order to build a new government is the tactic. Obama and his minions couldn’t possibly be so ignorant about economics.

It feels like a bloodless coup attempt to me.

Filed Under: Economics, Government · Tagged With: