The Church of Kharma Futures

The Rev's views on politics, events,faith, and the world. All content copyright Church of Kharma Future 2007-2015 All rights Reserved

Archive for July, 2008

Economic Ignorance and the Politics of Control

Posted by revkharma on July 31, 2008

The evening news has just started. The lead story is the reports of the latest reports of  “Record Profits” for Exxon- Mobil. They cut to people filling their gas tanks ( Pick up, SUV) and ask if the reports of “record Profits” makes sense to them.
Of course none of the people asked could say much other than , “I don’t know, I don’t understand it”
They then cut to a phone message with a US Congressman from area  He says ( not exact words here)
” It is not right.. With people suffering here, paying $4.00 at the pump and they keep reporting all this money. I support reasonable profits, but I think this is profiteering!”
OK, congressman, tell us, the unenlightened masses, just how much is a reasonable profit?
I wonder, if asked, if the estimable Member of Congress could tell us the profit margin made by Exxon-Mobil, and how it compares to say, the margin made by the communications company that owns , the station broadcasting this news tonight.
Finally, the anchor wraps up with this bit of economic brilliance:
Well, believe it or not, Exxon-Mobil’s stock actually  DROPPED $4.00 per share today. It seems that Wall Street expected even greater profits!  How EVIL of people to expect a profit! I wonder how much of the pension plan this bubble headed broadcaster owns is invested in Exxon- Mobil stock?
Why did the stock drop today?  Because they expect to sell  less oil next year, as Americans actually cut back. This will reduce profit. Exactly the same way that the increased use of oil led to higher profits this year!
The enemies of freedom count on the ignorance of America.


Posted in Big Government, economics, Oil, Oil prices, Politics, regulations | Tagged: , , , , , , , , | Leave a Comment »

Socialism and Control: Destroying the Economy

Posted by revkharma on July 23, 2008

As the never ending campaign for President grinds on and on, we hear more from various ‘intellectuals’ telling us how things ‘simply must be done’ if we are to have our economy survive. This morning on NPR’s “Market Place” brought out another whopper. Robert Reich, former Bill Clinton Labor Secretary expounded on how unfortunate we Americans are when compared (once again) to our more fortunate European counterparts. Mr. Reich, a professor at UC Berkley feels that we Americans simply do not have enough vacation time. He compares the average US worker’s time off with that of several European nations. The French, for example have 37 days off. His solution is, of course federally mandated paid vacation time for all US workers. Nifty idea, eh? But then, just where will the  money come from? Any employer has a set budget, and a mandated increase in paid time off will need to be offset by other wage reductions: either lower rate of pay, or fewer employees on the payroll. Getting laid off will certainly add to your time off, but it surely will not help your finances. Alternatively, employers could offer more ‘paid time off’ by reducing overall compensation. The same dollars will simply be spread out over actual time worked and paid time off.  The result will inevitably bring a reduction in overall productivity, and a decline in the general economic strength of the  US economy. A quick comparison of the US economy and that of just about any nation on earth shows exactly the result of such ‘free vacation time’. Worker productivity in the USA is vastly higher than the combined productivity of the EU nations. GDP per employee hour in the US for 2006 hovers just around $50 per hour worked. the same period  for the EU shows a rate around $38 per hour worked. All those days off the job sipping wine and eating smelly cheese at a street cafe show up quickly.

If the figures are broken out for the most competitive EU nations, France, Italy, Great Brittian, the gap narrows, but still those countries lag behind. Imagine if their workers actually showed up and actually DID something during August! (Anyone can search and verify this information, my source today is from this source: Backtalk Blog)

Mr. Reich ends his rant against evil employers with a telling conclusion. He urges anyone campaigning for office to promise free vacations to potential voters. What a concept! Run for office and promise to use the power of government to force private business to pay someone for not working. I seem to recall there is a document somewhere called The Constitution that forbids government from enacting legislation which interferes with legal contracts. ” No State shall…pass any Bill.. or Law impairing the Obligation of Contracts” Article1, section 10. But to a professor, a BERKLEY professor at that, why care what the Constitution says? Just ignore it, and hope that if and when it gets to court, the judge will go with the flow, and invoke a “living, breathing, doctrine of the Constitution” which allows the imposition of current enlightened thought in place of the plain text of the actual document.

The big government socialists are very good at promising all sorts of things to people and obligating someone else to bear the burdens created. Someone like Mr. Reich is insulated by tenure and connections, and thus pretty close to immune from the consequences of his theories. The average worker, who will be displaced or suffer a pay cut in order to pay someone else to take vacation is not immune. But the politicians will continue to make promises,and thereby expand the scope and power of government. Once they do so, the problems which result from their schemes are then used to justify MORE power grabs and more control over the economic liberties of more Americans. Each expansion creates a new class of people dependent upon government for their economic support. That support is then taken from the increasingly limited pool of those who actually produce value rather than drain the public treasury. Remember, whenever a politician promises to give you something for free, it’s being stolen from someone else!

As always,

Keep the Faith.

The Rev

Posted in Big Government, Constitution, economics, Europe, Government Power, laws, Politics, Presidential race, regulations, Supreme Court | Tagged: , , , , , , , , , , | 4 Comments »