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Wednesday, April 14, 2010 - 8:36amSanction this postReply
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Very good - the battle lines are forming, and with the Ides of April tomorrow, no better time than now - and a prelude to a very hot summer...

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Wednesday, April 14, 2010 - 11:12amSanction this postReply
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Ed,

That is one of the best columns I've read! Excellent!

We owe Ayn Rand an enormous debt of gratitude for her eloquent moral defense of Capitalism. It is the foundation of this coming Civil War and it is she who has defined the sides. And it is also the explanation of the first 'shots' heard - the Tea Party movement.

You wrote, "Their self-consciousness as producers is emerging. They see themselves as suckers and cash cows to be slaughtered by expropriators." There are two things here. There is the moral self-awareness, the awareness that they have a right to the product of their labors. And there is something that accounts for the timing. Before, even if people felt they were being bled, they grumbled, but didn't act. Now, they see themselves not just being bled, but, as you said, slaughtered. It is the acceleration of statism under Obama that makes our current situation unsustainable. Instead of tolerating the tax of the statist as a burden, and trudging on, people see that no one could carry the proposed burdens. That motivates them to bring fresh eyes to Rand's startling proposal: You have a right to exist for your own sake.

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Wednesday, April 14, 2010 - 2:34pmSanction this postReply
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Thanks Robert and Steve!

Even productive Americans are morally confused, which has caused them to grudgingly acquiesce to being bled by statists. Objectivists should think of our niche in the battle as moral consciousness raising.

Post 3

Friday, April 16, 2010 - 6:24amSanction this postReply
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Ed, that's an awesome piece.

In among the reasons of 'why they are mad' is the outrage at the profligate spending, which, when it is publicly exposed as it was during the government's response to its self-generated crisis of meddling, results in exactly that kind of political response.


This is what made the 'hidden' borrowing and thus, subsidized extra spending via the abuse of the poorly named SS Trust Funds so insidious. I think most people on sites like this well understand this issue, but few people in general understood the accounting, even today, even as Clark put it in black and white 30 years ago and got 1% of the vote. The argument 'we were going to borrow the money anyway' is a total non-starter, exactly because of the evidence of the current outrage at disclosed spending. That full argument is 'we wanted to spend more than the electorate would politically tolerate, so we cooked up a way to hide the additional borrowing by taking it 'off budget.'

Few understand the real 'double whammy' impact of this scheme. Not only is a demographic surplus subsidy turning over into a demographic deficit drain, on an easily predicted actuarial basis, but the 'hidden subsidy borrowing' of that once surplus, when it is gone, is not really 'gone.' It leaves behind a hole in the budget, once paid for by the hidden surplus subsidy(which was justified as being required to exactly 'pre-pay' for this coming rainy day!) Revenues must increase or spending must be cut not only to pay for the added benefits drain, but to account for the hole left in the budget by the loss of subsidy.

Said another way, what felt so good on the way up -- the current spending bonanza paid for by borrowing from the future instead of saving for the future -- is going to feel doubly bad on the way down. Not only has the government mismanaged this program and not adequately accounted for an easily predicted coming rainy day, but their policy has actually made the coming rainy day worse than it would it have been(as it must, because it made former sunny days better than they would have been, via subsidy from the future.)

The government 'pre-paid', via extra taxation on an already surplus paying demographic, precisely nothing. Instead, they simply borrowed and spent even faster, heaping more debt on the future that is now here.

Total insanity.

If/when much of America realizes what these total idiots did to the nation(and continue to do to the nation), it will be as Moynihan once admitted on the floor of the Senate, decades ago, paraphrased from memory: 'God help us when the nation realizes what we've done.'

The Tea Party Movement is the nation beginning to realize that the CronyFest on the Potomac is and has been totally out of all control.

regards,
Fred

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Friday, April 16, 2010 - 7:22amSanction this postReply
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Fred- Good analysis of the fraud being perpetrated on us! I’ve been fighting such budget tricks and idiocy for decades. I can’t count how many times I’ve explained to people, for example, that when the federal government runs a deficit—just about always—that there is no SS surplus. None! Every dollar that goes into the SS trust fund is spent, with a surplus of IOU left on the books that will have to be covered in the future by more taxes or borrowing.

 

But knowledge is power, or at least the beginning of power. On occasions when Americans get fed up and try to understand what’s going on, and when they are educated, often by the Rush Limbaughs or other popular dispensers of information, then they can really frighten their elected officials who are pulling this crap.

 

That’s what’s happening now with the Tea Party movement. That’s why a lot of members of Congress won’t hold town hall meetings anymore, for fear of their constituents confronting them with uncomfortable facts. That’s why it was such fun watching Obama try not to squirm and to cover up his anger when Rep. Paul Ryan, at the health care Potemkim bi-partisan summit with Republicans, slapped him in the face with fact after fact.

 

I find it remarkable that Americans are out in the streets demonstrating over something like government deficits and debt, matters one would think would not provoke passion and would be of interest only at a handful of policy geeks.

 

There is still hope for freedom!


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Saturday, April 17, 2010 - 9:48amSanction this postReply
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"I’ve been fighting such budget tricks and idiocy for decades. I can’t count how many times I’ve explained to people, for example, that when the federal government runs a deficit—just about always—that there is no SS surplus."

My understanding is that even if the federal government ran a surplus for a given year, there would still be no SS surplus because it would still be deposited in the general fund to reduce the national debt.

The Social Security tax is a tax like any other one. There is no "trust fund", just a file drawer in a government office (I believe in W. Virginia) with some pretty looking IOUs that represent money spent, not saved.

Post 6

Saturday, April 17, 2010 - 11:58amSanction this postReply
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But governments have been redistributing wealth and spending wastefully big time since the New Deal. So what’s new today?
As noted, but yet unstated, is that Ayn Rand (i.e., Atlas Shrugged and Objectivism) are the difference between then and now.  The difference is that before, no one said that they have a right to their wealth, without any further explanation or justification being necessary. 

The Tea Parties, Glenn Beck, or whatever, get the news, but it is what is not reported that is the real news.


Post 7

Monday, April 19, 2010 - 11:15amSanction this postReply
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Michael -- If Ayn Rand's writings are what's new today, that still leaves the question begging -- why now, 50+ years after Atlas Shrugged, 60+ years after the Fountainhead?

I think it is more that something new -- the egregious scale of abuses of power going on in the current government -- echo events in something old -- Atlas Shrugged.

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