DO IT FOR THE CHILDREN

22 comments

Posted on 30th April 2013 by Administrator in Economy |Politics |Social Issues

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You hear Obama and his liberal brethren constantly invoking “the children” as the reason for anything they want to inflict upon the American people. Obamacare is for the children. Taking away guns is for the children. The $800 billion porkulus program was for the children. We needed to keep teachers in the classroom to educate our children and make them fine productive citizens. The storyline is a load of crap. Most of the billions spent annually “educating” our cherubs is pissed down the drain on massive bureaucracy, gold plated union benefits, and social engineering bullshit. There are 3.7 million teachers and 3.3 million are public school teachers. Among full-time and part-time public school teachers in 2007–08, some 76 percent of public school teachers were female, 44 percent were under age 40, and 52 percent had a master’s or higher degree.

We hear about how overburdened these poor teachers are, but some facts shed some light on that workload. The pupil to teacher ratio in 1970 was 22.3. Today, the pupil to teacher ratio is 15.4. The chart below is adjusted for inflation. In 1970 we were spending $5,000 per child. Today we are spending $13,500 per child. The average class has 30% less students and we are spending 170% more per student than we did in 1970. These facts would lead you to believe we are producing brilliant scholars across the board.

The average teacher pay in 2011 was $56,000, with the more experienced teachers making $80,000 or more. Considering the median household income in the US is $50,000, teachers are making a pretty nice salary for 9 months of work.

RPM Graph January 2011: Average Base Salaries for Public School Teachers, 2008

But salary only tells part of the story. The union benefits being subsidized by the American taxpayer is equal to or greater than the wages. Public school teachers have benefits that are twice the level of the average worker. Therefore, their overall compensation package is much higher than the average worker in this country. But, we hear stories about underpaid and overworked teachers. We hear storylines about how if we just paid teachers more (higher taxes for you and me) our children would benefit tremendously.

Average Benefits as a Percentage of Wages, Adjusted Data

Well here is the problem. Even though class sizes have declined dramatically, spending per student has surged, and teachers are already compensated at an above average level, our public school system is a fucking failure. Math scores are at the same level they were in 1972. Critical reading scores are at all-time lows. We’ve spent all this money and got no ROI. Of course 95% of public school graduates can’t calculate an ROI, so it doesn’t really matter.

Does it ever occur to liberal do-gooder control freaks that we spent $2,000 to $3,000 per student in the 1950s and 1960s and produced engineers, scientists, and mathematicians that put people in outer space, designed and constructed buildings and highways, and created the technological marvels of today? Remember, those spending levels are inflation adjusted. We spend six times as much per student today as we did in the 1950s and only 30% of high school seniors score high enough on the SAT exam to do B minus level work in college.

Our public educational system is a complete failure and spending more money on teachers, bureaucrats, and social engineering will not change it. Everything the government touches turns into a disaster. Obamacare here we come.

HAUSER’S LAW

12 comments

Posted on 8th April 2013 by Administrator in Economy |Politics |Social Issues

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Tax rates in the U.S. were much higher in the 1940s and 1950s, but it didn’t result in the government collecting more tax revenue as a % of GDP. The tax code isn’t 60,000 pages because the corrupt politicians want to collect more taxes. It is 60,000 pages because our politicians have been bought off by special interests to give them tax breaks. The tax code will never be simplified because politicians would lose power. No matter what happens, the government will never collect tax receipts much more than 20% of GDP. 

“No matter what the tax rates have been, in postwar America tax revenues have remained at about 19.5% of GDP.” – William Kurt Hauser

Federal government spending, on the other hand, has surged to well above 20% of GDP and is on automatic pilot to explode to 30% of GDP as the entitlement promises of corrupt politicians come due over the next 30 years. The lying MSM perpetuate the falsehood that we don’t have a spending problem, counting on the fact that the average government public school educated dullard can’t do basic math computations.

When you add Federal, State, and Local government spending as % of GDP together, it exceeds 42%. This number was less than 30% in the 1950s and early 1960s. Has bigger government benefitted you? Is healthcare cheaper and more efficient? Do you have more freedom or less freedom? Are you more safe or less safe? Has your standard of living increased or decreased?

Raising tax rates on the rich sounds like a great idea, but they will figure out a way to not pay more taxes. The only solution is to cut our spending and reduce our debt. But it won’t happen. So it goes.

HIGH CAPACITY

8 comments

Posted on 15th January 2013 by Administrator in Economy |Politics |Social Issues

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Obama the Enthusiast © Nate Beeler,The Columbus Dispatch,barack obama, debt, limit, ceiling, assault, weapon, rifle, high, capacity, magazine, gun, control, spending, government, deficit, politics

REPUBLICANS & DEMOCRATS PRETEND TO BE FIGHTING

4 comments

Posted on 29th December 2012 by Administrator in Economy |Politics |Social Issues

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CONSUMER COLLAPSE

30 comments

Posted on 30th May 2012 by Administrator in Economy |Politics |Social Issues

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How can we be having an economic recovery when debit card usage is plunging and pending home sales are declining during the biggest home selling season? The answer is that we aren’t having an economic recovery. The consumer is dead in the water. They aren’t using their debit cards because there is no more cash left in the checking account to debit. As a last gasp, they are again turning to their credit cards to make ends meet. One little problem. That just delays the time when they have to pay. And if the cash isn’t in the checking account today, it won’t be there next month either. Do you think the Wall Street banks will be able to reduce their loan loss reserves in the next year? Not bloody likely. There is a tsunami of bad debt building up again. Millions have fallen off the 99 week UC rolls. There is nothing left to pay the bills and there is nothing coming down the pike from the Obamanistas to save the day.

The data today from Visa is a sign of desperation and coming consumer collapse. Retailers will be crushed. Mall owners will be crushed. The banks that loaned the money to the mall owners will be crushed. Delusions and illusions will be crushed.

Pending home sales should be going up as people sell their houses in the summer in order to get their kids set up for the coming school year. The NAR said they would rise this month. Instead they fell. And last month’s number was revised downward. We’ve got the lowest mortgage rates in history and pending home sales are falling. That sure sounds like a healthy housing market.

The data tells a story – a story with an unhappy ending. We are in recession today. Hussman is right. ECRI is right. The data proves it. Only dumbasses and pathological liars say otherwise.  

 

Debit Usage Collapses At Visa As Consumers Shift Back To Credit

Business Insider

Visa offered some disappointing data on payment trends this morning in a new 8-K filed with the SEC.

The key takeaway: debit transactions collapsed as consumers shifted to credit.

From the release (emphasis added):

For the month of April 2012, U.S. aggregate payments volume growth was negative 3% versus U.S. aggregate payments volume for the prior year period. Further broken down, U.S. credit payments volume growth was positive 8% and debit payments volume growth was negative 12%. Cross border volume growth on a constant dollar basis was positive 13% globally over the prior year period. Processed transactions growth was negative 1% globally.

Through May 28, 2012, U.S. aggregate payments volume growth was 0% versus U.S. aggregate payments volume for the prior year period. Further broken down, U.S. credit payments volume growth was positive 10% and debit payments volume growth was negative 8%. Cross border volume growth on a constant dollar basis was positive 13% globally over the prior year period. Processed transactions growth was positive 1% globally.

Visa shares were nearly two percent lower in pre-market trading.

 

NAR: Pending home sales index declined 5.5% in April

The Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 5.5 percent to 95.5 from a downwardly revised 101.1 in March but is 14.4 percent above April 2011 when it was 83.5. The data reflects contracts but not closings.