Many of my friends work in the service industry. Some either currently own or have owned their own joint. Many have managed one. When discussing politics or economics with the more liberal of them, I often get push back on my thoughts and ideas. The concept that a free’er market would help everyone is foreign to them. The idea that reducing or eliminating the minimum wage is a horror story; they run away screaming.
But I just go back to the bar room. And I ask 1 simple question:
Posted in Economics, Economy, Politics: National, Politics: North Carolina
Tagged Leftist, Liberal, Politics, Socialism, Unemployment, Unions
I call BS. Clear case of marginal value.
-p
Posted in Economics, Politics: National
Tagged Leftist, North Carolina, Unemployment
When we look backwards, it’s easy. We see that as we lost steel working jobs and coal mining jobs to various other countries around the world, we found other more value added jobs here. We became technology leaders in fields such as IT and medical care.
However, looking forward is much harder. Both in vision and on the soul. We literally can’t see the type of industry that we will identify and advance in. That industry that will provide the new jobs of tomorrow. Further, we view tomorrow with trepidation wondering what role this new world order has in store for us.
It’s valid. Life is somewhat hard. It requires grown up planning and grown up work. It requires sacrifice, often times significant. But fear can not stop advancement. And advancement initiates creative destruction. My advice; learn smelting. Because stone is a thing of the past:
Hat tip: Mark Perry at Carpe Diem
The State of North Carolina claims that it is serving the people. It claims that by relieving my money from, well, from me, they are helping other people in need. Never mind for a second that I already help people in need through my various charity giving and other activities. Or that the people I help are people that I think need help. Or that, in any case, this decision on what to do with my money should be mine to make. The State is helping an entire class of citizens, or so they claim:
Raleigh, N.C. — A program launched a year ago has helped more than 2,500 North Carolina homeowners avoid foreclosure, officials said Monday.
…
Birdsong will now receive mortgage assistance, including payments for property taxes and homeowner’s insurance for at least the next nine months and could benefit for as long as two years.
That’s one way of looking at it. The other way, of course, is to look at it this way:
Raleigh, N.C. — A program launched a year ago has prevented more than 2,500 potential North Carolina homeowners from attaining affordable housing, officials said Monday.
…
Their goal of home ownership has been prevented because select citizens will now receive mortgage assistance, including payments for property taxes and homeowner’s insurance for at least the next nine months and could benefit for as long as two years.
But serious. I’m sure that all the people who are in danger of losing their homes are good, hard-working people who almost certainly bought a home that was within their means and needs. Right? No?
She said she’s most relieved that her three children will be able to spend the holidays at home.
“Each one of them has their own room. They’re like, ‘It’s mine,'” said Birdsong, a widow. “I wouldn’t want to take that from them. They’ve had enough problems already.”
So, a single mother with one revenue stream over reaches, buys a FOUR BEDROOM HOME surprisingly finds herself in a financial pinch. And because of that, the government takes my money, thereby preventing me from giving to who I think is deserving, props up this family and keeps what would otherwise become a more affordable home from falling into the hands of more responsible home owners? Unbelievable.
For the record, I grew up in a house that had TWO bedrooms. Sure, after a bit we added a bedroom, but that was when my family grew from 3 to 6. That’s 2 rooms for 4 kids. If only I could have had my own room.
Merry Christmas.
Posted in Economics, Politics: National, Politics: North Carolina
Tagged Democrat, Housing, Leftist, Liberal, North Carolina, Recession, Unemployment
Or, maybe, you just have to have never done it. Check out this bit of information describing the Obama Administration:
Rookie QB, RB and WR. Wonder why we have zero points?
We are witnessing a deadly combination; A powerful government expansion into the private sector coupled with an administration that has not one single clue how to run an organization within that private sector. The Entrepreneur in Chief himself has never held a single position that required him to run an organization of people, accomplish a goal and do it well or be fired. Shift managers at McDonald’s have more experience running a shop than this guy.
And so it is that while I shake my head in wonder, I find myself understanding how this can continue to continue:
WASHINGTON – The Obama administration, battling a foreclosure crisis that shows no signs of relenting, will step up pressure on mortgage companies to do more to help people remain in their homes, officials said Saturday.
… the goal was to increase the rate that troubled home loans were converted into new loans with lower monthly payments.
Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area.
So, to be clear, the government “stepped up pressure” on firms to borrow people money so that they could get into a home. Then, when those people who couldn’t afford to buy a home actually start to demonstrate that they can’t afford to own a home, the government is going to “step up pressure” on those companies to help those people who can’t afford to be in a home stay in the home that they can’t afford to be in.
Awesome.
And why are we going to do this?
Rising foreclosures depress home prices and threaten the sustainability of the fledgling economic recovery.
Ahhh, yes. Of course. And so, in an effort to help fix the problem, ol’ Unc Sam is gonna step in and hold those home prices artificially high. See, right now, there are a number of people holding onto assets [homes] at a price that isn’t sustainable. Given their marginal risk and marginal gain, they are determining that keeping the house is not an option. If left to normal devices, the house would foreclose and the surrounding properties would adjust their value; almost assuredly downward. This in turn sends a signal to home BUILDERS that new homes are not needed and therefore they won’t be built. In time, the value of existing homes will find a level at a sustainable price and people will again begin to buy homes.
But no. Obama wants tp keep prices artificially high. This in turns keep people in their homes sending signals to builders that we need more homes. Further, because these value stay high a whole segment of the population is not able to realize THEIR dream of buying a home; they are priced out. In any event, the bubble that was is now becoming the bubble that continues to be.
The best part?
Under the $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years.
We get to spend a TON of money that we don’t have on a government program that is going to beg, BEG, for fraud and abuse.
At this rate; Sarah Palin, heck, anyone, will be able to beat Obama in 20112.
Tagged Bailout, Barack Obama, Politics, Unemployment, zHousing, zNorth Carolina