Your Cost of “Government Default”

                       

Politicians in Washington have a different interpretation of government default than what it is in the real international financial field.

                       

To politicians, true danger is any event that doesn’t help get them elected or keep them in office

                                           

So why not make the debt ceiling higher? It allows them to spend more despite high budget outflows

                       

In the real world, bondholders would prefer to have their interest and principal payments held up temporarily, for assurances, the U.S. were trimming its budget to make all its payments in the future.

                       

Not the other way around, with government kicking the proverbial problem down the road every few months until the U.S. becomes another bankrupt Greece or Portugal. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)

Penalizing Savers

Politicians love to tax “the rich” but they’re really taxing savers who believe in the compound interest table and know how it works over a number of years.

                       

Save $1,000 of earnings each year for only 25 years at 6% and you have amassed $58,100. Put away $10,000 annually and you have over $581,000, in just 25 years, If you stopped adding to the money, because part has been taxed away, , you would have far less capital.

                       

You probably still consider yourself middle class; your net earnings have been modest. But you’re labeled “rich” by liberal politicians who want to tax you all along, to support their “poor” voting bloc.

                       

Ironically, most of the finger-pointing politicians have far more wealth than you, whether actually earned or inherited.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)

Chrystal-Ball Futures Markets

           

Some have create a futures market on a subject of importance to their company. They feel that certain points of view, though a gamble, can be prescient, if the gamblers or speculators have no inherent bias in their choices.

           

Future projections on business concerns always are difficult to estimate. If any can be predicted with more independent accuracy, they would be immensely practical.

           

But caution is needed. For such markets to have value, they must

have lots of independent input. Sampling should be efficient and unbiased.

                       

I find that is almost impractical in most business projections. However, futures markets may have their place in foretelling political outcomes and general marketing concepts.(See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

       

Joseph Schumpeter’s Influence

           

Those who know the least about capitalism rant the most about its negatives and never appreciate its overwhelming positives. To those I would suggest a review of the life and work of Joseph Schumpeter, the Austrian-German-American economist. He died in 1950 and has been since overlooked in academic circles and the media.

           

His view of “creative destruction,” how the demise of established companies led to a growing economy has been the foundation of the American dream for so many.of its citizens

           

Personal incomes have doubled every fifty or sixty years in America, when entrepreneurial zeal is permitted to operate.

           

Yet, left-leaning politicians will never guess there is any economic opportunity without government being the instrument of largess.(See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

College Marketing

Too many schools market themselves by appealing to the baser instincts of students. The idea is to fill the rosters by making it easier to attend. So many graduates are unable to find real, practical jobs. Or why we have so many grads with easy-to-get law degrees and few who are doctors and scientists.

Affirmative action is practiced, not just for conventional minorities. It is there for any group that is not equally represented in attendance (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

College Education a Frequent Hoax

College education has become a scam in many ways. College administrators and politicians should drop promotional hype. Higher college enrollment and government loan programs and subsidies may be good for the college marketers, but they don’t produce the training needed to fill real, paying jobs in industry.

Too many degrees, especially from four-year institutions, offer graduates little skills but only a resume, when they go looking for a job in the real world.(See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

Welfare Demonstrations Are Inevitable

Europeans generally earn about as much for not working as they do on the job; their unemployment insurance is really comfortable welfare.

At the same time, they are accustomed to government handouts of all kinds, despite government bankruptcy; the laws of economics mean nothing to them or their elected officials.

No wonder Europeans take to the streets whenever belt-tightening is suggested as a solution.

Unfortunately, the majority of U.S. voters are on a similar lemming-like track. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)