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Saturday, November 6, 2010 - 5:14pmSanction this postReply
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This election is different in a couple of good ways (in addition to granting us the relief of gridlock). This wasn't an endorsement of Republicans - who are still properly distrusted and disliked. It wasn't just a change from one party to the other. It was like the absentee owner comes to the business and kicks out the old managers putting in a new group that he is going to watch closely swearing to be more hands-on with the business of managing.

It is also the first time we have seen anywhere near 30 new members of congress who won by declaring they would move towards a constitutionally limited government, a reduction in taxes, a reduction in spending, and pass a balanced budget amendment.

Yeah, I know. Promises, promises. But I no longer think the light at the end of the tunnel is another train coming this way. Another election or two ought to clear enough statists out of Washington, replacing them with people willing to cut 40% to 50% from spending, and to replace the income tax with something non-progressive and minimal.

There is a natural mechanism at work. The government has sprinted far to left of the majority of voters over the last few decades - this is a readjustment bringing the government back closer to where the majority live. The additional good news is that a fair amount of education of that majority has occurred, and continues to occur because of the dissonance that brought about that shift.

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Sunday, November 7, 2010 - 4:48pmSanction this postReply
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Steve,
 
The 2010 landslide was even more catastrophic for Democrats than it appears. This is a Census year and Republicans control the congressional redistricting process in the major states that gaining population: Florida, Texas and Utah. Republicans also control the redistricting process in the major states losing population: Michigan, Ohio and Pennsylvania. Redistricting could give Republicans a permanent 10-20 seat boost in every House election until 2020. Couple that with 23 Democratic Senate seats vs. 9 Republican seats up for election in the Senate in 2012 and you have the recipe for a lasting congressional GOP majority.
 
This was truly a transformational election.
 
Jim


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Sunday, November 7, 2010 - 5:39pmSanction this postReply
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Jim,

You are correct.

And there are other effects which have to do with direction and momentum. Before the election the Senate Democrats could muster their majority to overwhelm a united Republican opposition. Now, even if the numbers in the Senate were the same - they aren't, but if they were - there would be a much greater chance of Democrats defecting. It isn't just a matter of numbers but also of strength of will. Many of the Senators on both sides of the aisles will be up for election in 2012 and don't want to become unemployed. The whole world sees this move to the right. The media, the states, the parties, etc. Now it is the Tea Party agenda that is on the offensive, and doing so from within the government as well as from without. And the people that agree with Tea Party principles are more strongly empowered - and the Democrats and the media start finding themselves more on the defensive.

And now more people in the country are turning to libertarian sources for political information. Turninig to people like Stossel, Beck, Yaron Brooks, Ron Paul, etc., and they gain a little more credence than they had before. This furthers the needed education of the voters which is so essential.

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Monday, November 8, 2010 - 7:09amSanction this postReply
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My only concern is the reluctance by Republicans to even discuss reducing the scope of entitlements. The majority of the federal budget is taken up by social security, medicare, etc. and it seems like a political hot potato to even discuss ways of reducing those programs. It's certainly noble to attack "government waste" but that is just a drop in a bucket and would do almost nothing to address the debt problems.

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Monday, November 8, 2010 - 9:57amSanction this postReply
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John,

Agreed. This will be the measure of the Tea Party candidates - both their integrity and their ability to exercise the mandate they were given - which means asserting the mandate the voters gave them over both the democrats and the establishment republicans.

Entitlements may be sensitive but they need to reduced. The other sacred cow that must butchered is the government workers unions. They've got to go. No collective bargaining for taxpayer funded jobs. And lastly, the size of the total cuts has to be massive. If $0.42 of every dollar spent today is borrowed, then they need to cut spending 42% just to balance the budget and it doesn't address debt reduction and it doesn't address real stimulation (reduced tax burden).

They should take a page from the progressive strategy book: Start declaring an emergency... pending collapse of the economy, destruction of the American dollar, etc.

And all changes, like the tax cuts, need to be permanent - got to start building a sense of stability.

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Monday, November 8, 2010 - 4:01pmSanction this postReply
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Jim,

This was truly a transformational election.
It was like a fundamental transformation of the country, if you ask me.
 
:-)
 
Ed


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Monday, November 8, 2010 - 7:39pmSanction this postReply
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Here's a proposal:

Opt-out option for people to opt-out of social security, medicaid, and medicare. Opt-out means that you won't be taxed for it, but you also cannot receive benefits.

Furthermore, the federal government should separate the finances of social security, medicaid, and medicare, each from each other and the rest of the government. They are only financed by people who opt-in to them. No deficit spending allowed.

Lastly, if there isn't enough money to pay to people who the government said they would pay to, sorry, you loose, you shouldn't have trusted your finances/health/life in a government that practices ponzi schemes and deficit spending. Maybe some people will volunteer to help you.

Can try to promote this as the "Save our working families and our children's future" scheme to appeal to women. Working men will like it because they don't have to pay taxes to pay for lazy people. Old people will like it because... um, yea they got ripped off, but at least their families can be successful now. Lazy people... well, I don't care whether lazy people like it.

Cheers,
Dean

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Tuesday, November 23, 2010 - 12:48pmSanction this postReply
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I applaud Dr. Machan's analysis, as well as his wistful characterization of this as a 'second best' outcome.

My concern is that this will in some sense be a repeat of 1994, in that, the ritualistic blood-letting provides enough 'relief' -- relief that DC is at least gridlocked and the bleeding is stemmed. Sufficient relief that, once again, the rainmakers come out and make the rains return, and the panicked voodoo high priests(of both parties), who have been sweatily dancing around the base of the volcano and doing their rain dances, confident that 'someday, the rains will come again,' will point to their sweaty gnashings, their throwing of every constructivist half baked idea in the book at the economies, as 'proof' of the power of their Juju magic.

And, once again, it will be as if we took just half of our full dose of anti-biotics, and the left wing infection will remain, unchecked, undaunted, and unrepentant.

Bush, on the way out the door and worried about his legacy, panicked in the Fall of 2008, and started the ball rolling. The incoming Obama Administration gladly picked that ball up with the voodoo witch doctors formula and didn't skip a beat. "The rains will come again. In the meantime, we will dance and demonstrate that we 'did something.' In this case, spend like drunken sailors handing out political payoff to unions and other connected crony based payola. If the rains come again, we will take credit. If they don't, we will blame the purity of last year's sacrifices, demand more, and wait again for the rains. Lather, rinse, repeat, can't lose."

Same formula that voodoo priests have used for generations.


Only this time, the voodoo priests are panicked, because the tribe got way too good a look behind the curtain at all the sausage not being made. It is apparent to more people than ever that the 'economy runners' this time are not running a damn thing except their little voodoo dances.


They are busted, and in risk of losing the gig, and so, in a panic.

Hence, Krugman's 'topsey turvey economics' paradox of toil.

Total nonsense.

regards,
Fred

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