Quotulatiousness

February 24, 2024

Never mind the unfunded liability … money printer go brrrr!

Filed under: Economics, Government, USA — Tags: , , , , , , — Nicholas @ 05:00

Kulak at Anarchonomicon points out that the US government’s debt situation — which was alarming 20 years ago — has continued to get worse every year:

Libertarian Economists have been predicting this collapse of the federal system would happen “By About 2030” since before 2008. I remember in high school in the early 2010s listening to Ron Paul lectures and visiting USDebtClock.com, this was a hot button issue after 2008 … (then of course there was no political will to do anything and everyone just stopped talking about it)

I honestly forget that everyone around me doesn’t already know this, this is so common and accepted in libertarian and economic circles, and everyone who knows it got bored of eyes glossing over when they tried to explain it (in an autistic panic) decades ago.

US Unfunded liabilities:

Social Security, Medicare, Medicaid, US Debt, and Federal employee benefits and pensions, are all basically intergenerational ponzi schemes that require constant 1950s level population growth amongst the productive tax paying middle-class to maintain. By 2000 it was obvious this population growth was not happening, that population was beginning to age and collapse, and NO, the illegals at the border weren’t adequate replacements … (they weren’t adequate to prop up federal expenses in 2000 when they were still Mexican, now that they’re Guatemalan, Haitian, and Senegalese they’re almost certainly a net drain).

The Specter of Mass Boomer retirements with few to no children and grandchildren to replace them and pay for all the costs of their retirements and healthcare was maybe the slowest but most assured crisis ever to be seen in human history … Demographics is destiny.

This was a foreseen problem in 2000 when US Debt to GDP (just the portion that’s already been spent and interest has to be paid on) was 59% of GDP. Today the US Debt to GDP ratio is 122% of GDP whilst just in the past 24 years. Absolute US Federal Debt (not including state or local) has grown from 5.6 trillion dollars to 34 trillion dollars (102k per citizen: man, woman, and child). just the interest that has to be paid out of your tax dollars on that debt is set to eclipse ALL US Military spending sometime this year … And by 2028 Debt to GDP will be 150% (46.4 Trillion, 132k per citizen, 12 trillion more in 4 years, with no additional spending bills) and the Interest (at current estimates) will be over 2.5 trillion dollars, over a third of all Tax Dollars brought in will be spent on just interest, because dollar confidence has collapsed and the only way to keep inflation from destroying the dollar has been to radically raise the interest rates the Federal Reserve offers.

Now all that, That catastrophic state of things, is just the debt, the money that’s been spent … The real crisis is the Unfunded liabilities, all the promises the US has made to Boomers (who dominate the vote) and others about money they’re GOING to spend.

As of now total Unfunded liabilities stand at 213 trillion dollars, $633,000 per US Citizen (Man woman, and newborn babe)… These are all dollars the US has promised to pay to someone somewhere at some point: Social Security, Medicare, Medicaid, Federal pensions, VA Benefits, etc. And cannot in any politically feasible way restructure or get out of.

If no one ever contributed another dime to social security, and in so doing was promised in turn significantly more than that dime (it’s a Ponzi scheme, it loses money in proportion to and at a greater rate than the money being contributed to it (every dollar you contribute you’re promised multiple dollars in return, and your dollar is not invested, it just pays off previous contributors)) … If everything froze and every young person was locked out of ever receiving Social Security, Medicare, or Medicaid, the Unfunded Liability would be $633k per every man, woman, and child … that’d be the debt a newborn American would be born with.

However because it is NOT frozen and it will not be, by 2028 that number will Rise to $837k and an ordinary household of 4 will have seen their, politically unavoidable, family obligation in future tax payments to the federal government increase by $804,000 in just 4 years.

If your response is that your family doesn’t even make 804k in 4 years and there’s no way you could ever pay that much in 4 years given its just going to increase at a faster rate the next 4 years … CONGRATULATIONS! 90% of families don’t make that much, and less than 1% of families could ever afford to pay that much in taxes in a 4 year time.

This has been slowly growing for decades, and in the late 2000s and 2010s Ron Paul types were screaming that those Benefits needed to be reformed NOW (in 2008) or they’d drown America. But of course, cutting benefits is political Anathema to boomers, so nothing was done …

The Course of Empire – Destruction by Thomas Cole, 1836.
From the New York Historical Society collection via Wikimedia Commons.

Justin Trudeau is his own Messiah

Filed under: Cancon, Economics, Media, Politics — Tags: , , , , — Nicholas @ 04:00

In The Line, Jen Gerson gets up a full head of steam (to borrow Matt Gurney’s phrase) over the Prime Minstrel’s brief visit to Alberta and what he revealed about his worldview and his sense of his own importance in an interview with a non-mainstream journalist:

Watching Prime Minister Justin Trudeau give an extended interview to Alberta’s Ryan Jespersen is the first time I’ve ever felt visceral concern about the man leading this country.

I genuinely don’t mean this in any mean or partisan sense. What I mean is that this interview raised serious concerns about Trudeau’s headspace, his judgment, and whether or not this man in particular should be leading the country right now.

The interview wasn’t a disaster: Trudeau brought up fair points that deserve more consideration in Alberta, and I will discuss them here.

But on the whole, what I see here is a man who has wildly inflated his own policy achievements while in office. What I see is a man who cannot accept responsibility for his shortcomings, nor for the real decline in both state capacity and quality of life now affecting Canadians. What I see is a man who won’t take accountability for his own unpopularity.

And, most concerning, what I see is a man who thinks of himself as a messianic figure; a man blind to his own partisan ideology and bad behaviour, but hyper attuned to the same in others. A man who divides the world between black hats and white, and cannot admit the possibility of a legitimate alternative viewpoint — and can, in fact, only explain the very existence of such viewpoints by resorting to the belief that all of his critics have been fooled. Fooled. A word he uses over and over and over again, without realizing the contempt this word betrays of his own feelings toward his audience.

This is a prime minister who cannot see the beam in his own eye; who exemplifies the trait — best summed up by National Post columnist Chris Selley and cited often here at The Line — that Liberals are the sort of people who are sincerely convinced they would never do the sorts of things they routinely do, or are in fact currently doing.

Let’s start with the quotes.

Trudeau starts out by noting that right-wing politicians create wedge issues. “A lot of what the right is doing is about stoking up anger without offering any solutions.” And insisting that right-wing politicians have “realized it’s easy to instrumentalize anger and outrage to get people to vote in a way that is not necessarily in their best interests”.

The last two elections called, Mr. Trudeau. They would like to discuss guns, abortion, vaccine mandates, and pretty much every single other ballot question the Liberals have abused to squeak out minority victories by maximizing vote efficiency in crucial central Canadian ridings.

Of course, it doesn’t count when Liberals court disinformation, or stoke irrational fear about their opponents, because when they do it, they have Canadians’ best interests at heart. They’re the good people, you see.

For when you’re on the side of the angels, on a mission to preserve democracy itself from the manipulative wiles of right-wing politicians out to fool people from holding wrong opinions, what means are not justified?

I would also point out that in the same way that it would be insulting and inappropriate for me to delegitimize Trudeau’s authority by arguing that he obtained two weak majorities by fooling Canadians via manufactured outrage on wedge issues, so too is he required to show some deference to the will of the voters of Alberta. One does not have to agree with everything Premier Danielle Smith does or says or proposes to demonstrate respect for the fact that she is the elected leader of the province, a role she secured in a free and fair election. But, alas.

Donna LaFramboise also reacted to the Ryan Jesperson’s interview of Justin Trudeau, saying that he’s like the Borg from Star Trek:

While visiting Alberta this week, Justin Trudeau was interviewed live by Ryan Jespersen, a former Edmonton morning show host whose podcasts are available on YouTube and elsewhere. That’s when our Prime Minister said the following:

    There is, out there, a deliberate undermining of mainstream media. There are the conspiracy theorists, there are the social media drivers who are trying to do everything they can to … prevent people from actually agreeing on a common set of facts — the way CBC and CTV, when they were our only sources of news (and Global) used to project across the country at least a common understanding of things.

Screen capture from a YouTube compilation – “The Borg Collective Speaks”

Mr Trudeau referred to “people on the fringes” who eschew the “mainstream view”. He said his government’s trying to “make sure Canadians understand the importance of not being fooled by misinformation, by disinformation”. Earlier in the interview, he said Albertans were being “fooled by right-wing politicians” and that oil sands workers have “been fooled” by energy companies.

Mr Trudeau is the Borg from Star Trek. He doesn’t respect alternative views. He has zero interest in listening or negotiating. If your analysis conflicts with his, you’re the problem. Renounce the fringe. Fall into line like the other Borg drones. Adopt the common understanding of things being fed to you by the government funded mainstream media.

Times might be tough right now, America, but at least you’re not Canada

Filed under: Bureaucracy, Cancon, Economics, Government, USA — Tags: , — Nicholas @ 03:00

You may be feeling the pinch from Bidenflation, election year stresses, and political lawfare, but at least you’re not up in America’s hat:

It’s late February, a time of year when many Americans contemplate stacks of documents and receipts, dreading the moment when they’ll have to square accounts with government extortionists. That this comes as the state grows increasingly intrusive and coercive adds insult to injury, since we pay the bill for this mistreatment. But it could be worse; we could be Canadian!

Same Inquisition, Different Dollar

“As tax season ramps into high gear in Canada, the average citizen is facing an unholy ream of paperwork so daunting that even the Canada Revenue Agency isn’t entirely sure how it all works,” Tristin Hopper wrote this week for the National Post. “An infamous 2017 Auditor General report found that CRA call centres ‘gave wrong information to callers almost 30 per cent of the time’.”

Oh, OK. That doesn’t sound much different from the experience here in the U.S., where the IRS hands out the wrong information maybe a quarter of the time. (Or more. Who knows?) But Canadians pay a high price tag for the privilege of spelling “call centre” with the “r” in front of the “e”.

But a Higher Tax Bill North of the Border

“In December 2015, Canada’s new Liberal government introduced changes to Canada’s personal income tax system,” Canada’s Fraser Institute, a free-market think tank, noted in 2020. “Even before the changes, the country’s combined federal and provincial top marginal tax rates compared unfavourably to those in the United States and other industrialized countries. … Nine Canadian provinces occupy the list of 10 jurisdictions with the highest top combined marginal income tax rates and all provinces are in the top 13 [across the U.S. and Canada].”

Umm. Ouch.

In truth, comparing tax burdens requires a deep dive because of differences in how taxes are applied, income brackets, deductions, and the like. Fans of big government always want to balance costs against “benefits” of government services, as if being mugged to support a state monopoly should be welcomed by those who’d rather shop among competitors or entirely forgo some services. Suffice it to say that comparisons of provincial and state tax burdens generally reveal a lighter touch south of the border.

Worse, though, the think tank finds overall economic freedom slipping across Canada.

Higher Taxes Reflect Less Freedom

“For the first time, every Canadian province ranks in the bottom half of jurisdictions in our annual rankings of economic freedom in North America,” Fraser announced of its Economic Freedom of North America 2023 report. “Alberta in the all-government index is once again the highest-ranking Canadian province but it has declined substantially. In the all-government index, Alberta is now tied for 31st place out of 50 U.S. states, 32 Mexican states, 10 Canadian provinces, and the US territory of Puerto Rico.”

Economic freedom is defined as you’d expect, with economic activity involving “minimal government interference”. As the report adds, “an index of economic freedom should measure the extent to which rightly acquired property is protected and individuals are engaged in voluntary transactions”.

Fraser compares the states and provinces to each other within their countries, and also across Canada, Mexico, and the United States. For the purpose of comparing jurisdictions across three nations, the report looks at six areas of economic activity: government spending; taxes; labor market freedom; legal systems and property rights; sound money; and freedom to trade internationally.

The highest ranked jurisdiction is New Hampshire, followed in the first quartile by Florida and 20 other U.S. states. Alberta ranks at 31, between Missouri and Connecticut. British Columbia comes in at 45, with Ontario at 50 and Manitoba at 54. The last-ranked U.S. state is Delaware, at 53, though the territory of Puerto Rico ranks at 61. Quebec brings up the rear for Canada, at 56.

Feeding Napoleon – Chicken Marengo

Filed under: Europe, Food, France, History, Wine — Tags: , , , , — Nicholas @ 02:00

Tasting History with Max Miller
Published Nov 21, 2023
(more…)

QotD: Big government

Filed under: Cancon, Government, Liberty, Quotations, USA — Tags: , , , — Nicholas @ 01:00

I’m Canadian and have a romantic fondness for the famous motto of the Royal Canadian Mounted Police, the one about the Mounties always getting their man. But the bigger you make the government, the more you entrust to it, the more powers you give it to nose around the country’s bank accounts, and phone calls, and e-mails, and favourite Internet porn sites, the more you’ll enfeeble it with the siren song of the soft target. The Mounties will no longer get their man, they’ll get you instead. Frankly, it’s a lot easier.

[…]

What should have died on September 11th is the liberal myth that you can regulate the world to your will. The reduction of a free-born citizenry to neutered sheep upon arrival at the airport was the most advanced expression of this delusion. So how’s the FAA reacting to September 11th? With more of the same kind of obtrusive, bullying, useless regulations that give you the comforting illusion that if they’re regulating you they must be regulating all the bad guys as well. We don’t need big government, we need lean government — government that’s stripped of its distractions and forced to concentrate on the essentials. If Hillary and Co want to argue for big government, conservatives could at least make the case for what’s really needed — grown-up government.

Mark Steyn, “Big Shift”, National Review, 2001-11-19.

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