Dr. Michelle Cretella Drops “Trans” Truth Bomb

THE BLAZE posts on this excellent response to a question at a Heritage Foundation panel. MOONBATTERY says this of Dr. Cretella: “Dr. Cretella is President of the American College of Pediatricians. No doubt social engineers are out for her head”.

Food Stamp Mantra[s] from Democrats Rebutted

Michael Medved responds to the food stamp issue that Democrats and the Left are bringing up. I take a clip from yesterday’s show and insert it into the middle of today’s show to give the listener some ammunition when these banal arguments come up. At the 5:17 mark, the caller mentions taxes for the millionaires as part of his argument. Medved Responds well to this challenge at the… and at the 6:24 mark you hear the caller respond with a bumper sticker jingle. In other words, talking about facts matters little to these people, but at least you will be able to influence those around you eavesdropping in on the conversation.

I posted this video on LIVELEAK, and a comment got me “clicking around” the internet to test what the person said. Here is the comment:

For every $1 spent on food stamps there’s a $1.80 stimulative effect to the economy. The poor person spends the funds at the grocery store, which allows the store to employ more people, the store spends the funds to buy more food which helps farmers and food producers. On the other hand, tax cuts for the wealthy have a negative effect on the economy, it just doesn’t trickle down enough so it drains economic growth. Plus it helps feed poor people that can’t afford to eat. — Warren H.

First, it should be noted that this idea was championed mainly by Moody’s chief economist Mark Zandi, a hard-core Keynesian. However, it should be noted that unfortunately “for Zandi, there has never been any empirical evidence of the Keynesian multiplier.  Government doesn’t take one dollar and turn it into more by spending it.  God doesn’t live in the White House, no matter how much Paul Krugman prays.” (AMERICAN THINKER)

HERITAGE FOUNDATION puts it like this:

…The Keynesian argument also assumes that consumption spending adds to immediate economic growth while savings do not. By this reasoning, unemployment benefits, food stamps, and low-income tax rebates are among the most effective stimulus policies because of their likelihood to be consumed rather than saved.

Taking this analysis to its logical extreme, Mark Zandi of Economy.com has boiled down the government’s influence on America’s broad and diverse $14 trillion economy into a simple menu of stimulus policy options, whereby Congress can decide how much economic growth it wants and then pull the appropriate levers. Zandi asserts that for each dollar of new government spending: temporary food stamps adds $1.73 to the economy, extended unemployment benefits adds $1.63, increased infrastructure spending adds $1.59, and aid to state and local governments adds $1.38. Jointly, these figures imply that, in a recession, a typical dollar in new deficit spending expands the economy by roughly $1.50. Over the past 40 years, this idea of government spending as stimulus has fallen out of favor among many economists. As this paper shows, it is contradicted both by empirical data and economic logic…

They then respond to the above:

The Evidence is In

Economic data contradict Keynesian stimulus theory. If deficits represented “new dollars” in the economy, the record $1.2 trillion in FY 2009 deficit spending that began in October 2008–well before the stimulus added $200 billion more–would have already overheated the economy. Yet despite the historic 7 percent increase in GDP deficit spending over the previous year, the economy shrank by 2.3 percent in FY 2009. To argue that deficits represent new money injected into the economy is to argue that the economy would have contracted by 9.3 percent without this “infusion” of added deficit spending (or even more, given the Keynesian multiplier effect that was supposed to further boost the impact). That is simply not plausible, and few if any economists have claimed otherwise.

And if the original $1.2 trillion in deficit spending failed to slow the economy’s slide, there was no reason to believe that adding $200 billion more in 2009 deficit spending from the stimulus bill would suddenly do the trick. Proponents of yet another stimulus should answer the following questions: (1) If nearly $1.4 trillion budget deficits are not enough stimulus, how much is enough? (2) If Keynesian stimulus repeatedly fails, why still rely on the theory?

This is no longer a theoretical exercise. The idea that increased deficit spending can cure recessions has been tested repeatedly, and it has failed repeatedly. The economic models that assert that every $1 of deficit spending grows the economy by $1.50 cannot explain why $1.4 trillion in deficit spending did not create a $2.1 trillion explosion of new economic activity.

(read it all)

CATO likewise notes that the numbers were fudged to provide exaggerated outcomes:

Food stamps are effective economic stimulus. Led by Mark Zandi and other Keynesian economists, food-stamp advocates have made wildly exaggerated claims about the program’s role in stimulating the economy. Zandi, for instance, claims that “extending food stamps is the most effective way to prime the economy’s pump.”

But aside from the fact that those economic models just as well predict an alien invasion would be a boon to the economy, there is little evidence to support the theory. Even the Agriculture Department’s own inspector general concluded that it was unable to determine whether the additional dollars in the stimulus’s food-stamp expansion were in any way effective in meeting the 2009 Recovery Act’s goals. Three of the four performance measures the program was supposed to use, the office found, “reflected outputs, such as the dollar amount of benefits issued and administrative costs expended” and did not provide any insight into outcomes.

On the other hand, we do know that a failure to get government spending under control will have long-term economic consequences. Food stamps are hardly the major cause of deficits and debt — that distinction lies with middle-class entitlements such as Social Security and Medicare — but every little bit helps.

Valerie Jarrett and Nancy Pelosi said similar things:

  • JARRETT: Let’s face it: Even though we had a terrible economic crisis three years ago, throughout our country many people were suffering before the last three years, particularly in the black community. And so we need to make sure that we continue to support that important safety net. It not only is good for the family, but it’s good for the economy. People who receive that unemployment check go out and spend it and help stimulate the economy, so that’s healthy as well.
  • PELOSI: Economists agree that unemployment benefits remain one of the best ways to grow the economy in a very immediate way. It immediately injects demand into our markets and increases employment. For every dollar spent on unemployment benefits, the economy grows by, according to one estimate, $1.52; by others, $2. So somewhere in that range, but much more than is spent on it…. We have a responsibility to the American people. These are people who have played by the rules, have lost their job through no fault of their own, and need these benefits in order to survive. So we must extend this insurance before the end of the year and we must extend it for at least a year. And I’d like to see that as we go forward before this year ends. Hopefully it could be part of a budget, but it doesn’t have to be part of a budget. It could be in its own vehicle as it goes forward, but it’s something we must consider.

Again, similar responses happened then as well:

Economists at the Heritage Foundation have written about this claim, explaining:

The theory behind extending UI [Unemployment Insurance] benefits as a stimulus assumes that unemployed workers will immediately spend any additional UI payments, instantly increasing consumption, boosting aggregate demand, and stimulating the economy.

This is not a new idea. Economists in the 1960s thought that unemployment insurance could function as an important automatic economic stabilizer. Empirical research in the 1970s demonstrated that this was not the case, and studies since then have concluded that unemployment insurance plays at best a small role in stabilizing the economy. Empirical research at the state level also finds that UI plays a negligible role in stimulating the economy.

Studies that have found that UI stimulates the economy effectively — such as studies by the Congressional Budget Office and economist Mark Zandi — rely on two faulty assumptions, thereby drawing a false conclusion:

They assume that unemployed workers spend every dollar of additional UI benefits almost immediately and that extending unemployment insurance does not affect workers’ behavior. In that case, every dollar spent on unemployment insurance adds a dollar to consumption without any direct effects on the labor market. Both assumptions are false.

Unemployment Insurance Prolongs Unemployment. One of the most thoroughly established results in labor economics is the effect of unemployment benefits on unemployed workers’ behavior. labor economists agree that extended unemployment benefits cause workers to remain unemployed longer than they otherwise would.

This occurs for obvious reasons: Workers respond to incentives. Unemployment benefits reduce the incentive and the pressure to find a new job by making it less costly to remain without work…..

Falkland Islanders Vote Overwhelmingly (99.8% ~ 3 `No` Votes) to Keep British Rule ~ Dems Routed

(Telegraph) Falkland Islands row: Argentina’s understanding of history is ‘laughable’ ~ Argentina’s demand that David Cameron ‘hand back’ control of the Falkland Islands is based on a ‘laughable’ understanding of history, an academic has said.

…The 3000-strong population of the Falklands are overwhelmingly pro-British. The islanders are due to be asked if they want to continue to be an overseas territory of the United Kingdom at a referendum in March this year. Mr Cameron has said the UK would “respect and defend” the result of the plebiscite.

Professor Dodds said: “It will reinforce a profound sense that the wishes of the Islanders is to remain part of the UK as an overseas territory.”

Dr Barry Elsby, Member of the Legislative Assembly of the Falkland Islands, told The Daily Telegraph on Wednesday night: “We are not a colony – our relationship with the United Kingdom is by choice.

“Unlike the Government of Argentina, the United Kingdom respects the right of our people to determine our own affairs, a right that is enshrined in the UN Charter and which is ignored by Argentina.”…

…read more…

Democrats on the wrong side of history yet again!

Falkland Islanders voted overwhelmingly to keep British rule on Monday. Reuters reported:

Residents of the Falkland Islands voted almost unanimously to stay under British rule in a referendum aimed at winning global sympathy as Argentina intensifies its sovereignty claim.

The official count on Monday showed 99.8 percent of islanders voted in favor of remaining a British Overseas Territory in the two-day poll, which was rejected by Argentina as a meaningless publicity stunt. There only three “no” votes out of about 1,500 cast.

“Surely this must be the strongest message we can get out to the world,” said Roger Edwards, one of the Falklands’ assembly’s eight elected members.

“That we are content, that we wish to retain the status quo … with the right to determine our own future and not become a colony of Argentina.”

Thanks to Gateway Pundit for the h/t:

Barack Obama snubbed America’s greatest ally Great Britain to side with Argentina’s left leaning President Cristina Fernandez on the Falkland Islands. Heritage released this excellent video on the situation.

UK Paper Headline: Years of liberal dogma have spawned a generation of amoral, uneducated, welfare dependent, brutalised youngsters

Here is some of the article from Mail Online, and take note I just talked with someone who said Britain has a proud socialist history — this is what you get from it:

… The people who wrecked swathes of property, burned vehicles and terrorised communities have no moral compass to make them susceptible to guilt or shame.

[….]

They are essentially wild beasts. I use that phrase advisedly, because it seems appropriate to young people bereft of the discipline that might make them employable; of the conscience that distinguishes between right and wrong.

They respond only to instinctive animal impulses — to eat and drink, have sex, seize or destroy the accessible property of others.

Their behaviour on the streets resembled that of the polar bear which attacked a Norwegian tourist camp last week. They were doing what came naturally and, unlike the bear, no one even shot them for it.

A former London police chief spoke a few years ago about the ‘feral children’ on his patch — another way of describing the same reality.

[….]

Nobody has ever dared suggest to them that they need feel any allegiance to anything, least of all Britain or their community. They do not watch royal weddings or notice Test matches or take pride in being Londoners or Scousers or Brummies.

Not only do they know nothing of Britain’s past, they care nothing for its present.

They have their being only in video games and street-fights, casual drug use and crime, sometimes petty, sometimes serious.

The notions of doing a nine-to-five job, marrying and sticking with a wife and kids, taking up DIY or learning to read properly, are beyond their imaginations.

[….]

Its frustrations and passions were kept at bay by force and draconian legal sanctions, foremost among them capital punishment and transportation to the colonies.

Today, those at the bottom of society behave no better than their forebears, but the welfare state has relieved them from hunger and real want.

When social surveys speak of ‘deprivation’ and ‘poverty’, this is entirely relative. Meanwhile, sanctions for wrongdoing have largely vanished.

When Work and Pensions Secretary Iain Duncan Smith recently urged employers to take on more British workers and fewer migrants, he was greeted with a hoarse laugh.

Every firm in the land knows that an East European — for instance — will, first, bother to turn up; second, work harder; and third, be better-educated than his or her British counterpart.Who do we blame for this state of affairs?

 [….]

It is because it is fantastically hard to help such people, young or old, without imposing a measure of compulsion which modern society finds unacceptable. These kids are what they are because nobody makes them be anything  different or better.

[….]

So there we have it: a large, amoral, brutalised sub-culture of young British people who lack education because they have no will to learn, and skills which might make them employable. They are too idle to accept work waitressing or doing domestic labour, which is why almost all such jobs are filled by immigrants.

They have no code of values to dissuade them from behaving anti-socially or, indeed, criminally, and small chance of being punished if they do so.

They have no sense of responsibility for themselves, far less towards others, and look to no future beyond the next meal, sexual encounter or TV football game.

They are an absolute deadweight upon society, because they contribute nothing yet cost the taxpayer billions. Liberal opinion holds they are victims, because society has failed to provide them with opportunities to develop their potential.

Most of us would say this is nonsense. Rather, they are victims of a perverted social ethos, which elevates personal freedom to an absolute, and denies the underclass the discipline — tough love — which alone might enable some of its members to escape from the swamp of dependency in which they live.

Only education — together with politicians, judges, policemen and teachers with the courage to force feral humans to obey rules the rest of us have accepted all our lives — can provide a way forward and a way out for these people.

They are products of a culture which gives them so much unconditionally that they are let off learning how to become human beings. My dogs are better behaved and subscribe to a higher code of values than the young rioters of Tottenham, Hackney, Clapham and Birmingham.

Unless or until those who run Britain introduce incentives for decency and impose penalties for bestiality which are today entirely lacking, there will never be a shortage of young rioters and looters such as those of the past four nights, for whom their monstrous excesses were ‘a great fire, man’.

…(read more)…

Forbes says the following in their article, English Riots, Moral Relativism, Gun Control, and the Welfare State:

I wrote earlier this year about the connection between a morally corrupt welfare state and the riots in the United Kingdom.

But what’s happening now is not just some left-wing punks engaging in political street theater. Instead, the U.K. is dealing with a bigger problem of societal decay caused in part by a government’s failure to fulfill one of its few legitimate functions – protection of property.

…(read more)…

 

S&P official: Another downgrade will come if we don’t reduce long-term debt

Hot Air has this update to a post about what the S&P wishes to see:

Update: If we don’t stabilize and reduce our long-term liabilities soon, we’ll get downgraded again, says S&P:

The credit rating agency’s managing director, John Chambers, tells ABC’s “This Week” that if the fiscal position of the U.S. deteriorates further, or if political gridlock tightens even more, a further downgrade is possible.

Chambers also said Sunday that it would take “stabilization and eventual decline” of the federal debt as a share of the economy as well as more consensus in Washington for the U.S. to win back a top rating.

He puts the odds of another downgrade at 3:1.  I’d call it even money, at least while Democrats continue to blame the Tea Party for, er, wanting to do exactly what S&P demands.

 

Red Tape and Business/Job Growth (Heritage Foundation)

Federal agencies publish an average of over 200 pages of new rulings, regulations, and proposals in the Federal Register each business day. That growth of the federal statute book is one of the clearest measures of the increase of the government control of the citizenry (James Bovard, Lost Rights: The Destruction of American Liberty [St. Martins Griffen; 1994], p. 1.)

Heritage and Reason Take the Unions to Task

HotAir posts this video in regards to the recent union pressure as of late:

Are public-school teachers underpaid? Is the Battle of Mad Town really not about money?  Heritage Foundation and Reason TV take a look at both claims coming from the protests in Madison, Wisconsin, as well as a more fundamental myth that only Republicans are talking about cutting budgets and reducing the power of PEUs.  Nick Gillespie focuses attention on New York Governor Andrew Cuomo, a staunch Democrat who is also telling constituents hard truths about the unsustainable levels of public spending in his state and the need for reform.  Don’t expect this impulse to remain localized to Wisconsin, New Jersey, and New York, either — not with massive state budget shortfalls across the US:

…(read more)…