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Showing posts from September, 2010

More "Unintended" Consequences

Whenever you are designing a system, be it something in engineering, government, or otherwise, you always need to consider the unintended consequences of your design/policies. Sometimes these can be rather obvious, such as when you spend more money, you will need to collect more money so that you have it to spend (this may be delayed at additional cost in the case of borrowing, or you can also print it if you control the currency itself). Another classic recent example would be bailing out the large banks who took on huge amounts of risk in their pursuit of leveraged profits: by doing so, the government not only condoned the business strategy, but encouraged the banks to both take on more risk in the future, and essentially ignore the issue of divesting themselves of risky assets, both of which are proving more detrimental to the longer-term health of the US economy than their failures would have. Some are harder to anticipate, but rarely are the major ones difficult to see with even a...

More Easily Foreseeable Consequences: Obamacare

I feel bad for the providers in the health care insurance industry. They are directly in the path of the statist takeover of America, with a virtual death sentence hanging over their heads, and the full force of the government's propaganda machine (lead by the liberal media) working to paint them as the bad guys. The groundwork for nationalization has already been laid, and the financially crippling new regulations of Obamacare are starting to take effect. To date, the health insurance companies are taking it admirably well: responding civilly to the criticisms, putting a positive face forward, and adjusting their business models and practices in entirely predictable and foreseeable ways to try to compensate for the rule changes being forced upon them. First there were the rate hikes to compensate for the expected increases in costs, and the lack of any provisions in Obamacare to counteract rising costs in the industry, primarily related to liability costs. Now the companies are c...

Fannie Mae: Public Enemy #1?

Stories like this infuriate me. Fannie Mae, the government-run, taxpayer owned organization most recently known for passing on roughly $100 Billion in losses to the US taxpayers (with undoubtedly more to come), is launching a new program called HomePath to allow people to gamble on houses in foreclosure. In addition to directly creating untold billions in additional losses for US taxpayers (ha ha, suckers), this program will help keep the housing market artificially inflated, making it more difficult for savers to purchase affordable housing, rewarding speculators, and further delaying economic recovery for the country. Seriously, what kind of a sadistic incomprehensibly monumental moron dreamed up this atrocity? Furthermore, what band of corrupt thugs in the government oversight group which is running Fannie Mae actually approved this brazen theft of public money? If ever there was a clear-cut case for why government should never, ever be running a company even remotely connected to...

Better Political Distinctions: Libertarian and Statist

America has grown a lot since the time it was founded. Institutions have risen and fallen, nations have come, gone, and mutated, wars have redrawn maps, political experiments have been tested, and philosophies have been refined and reshaped. It seems to be that, particularly at this point in America's political evolution, the terms Republican and Democrat, or Conservative and Liberal, are perhaps no longer the best distinctions between the two major political schools of thought in the country. Rather, I would conjecture that the best distinction might be Libertarian and Statist, and I will explain. On the one hand, Conservative encapsulates a set of political philosophies fairly well, which amount to essentially the Republican ideals without the RINO influence. That is, a combination of limited government, traditional values, and free market capitalism. However, beyond that it's more fuzzy: does conservative also mean personal freedoms (eg: gun rights), or would that be more as...

Obama and Border Security: National Disgrace

The United State Department of Homeland Security is an organization under the executive branch of our government responsible for protecting the country domestically. They don't have a mission statement per-se, but if they had one, it might be along the lines of "keep America's homeland safe and secure." This includes, among other things, border security, and keeping people who don't belong in the country out of the country. Empirically, and somewhat strangely, the Obama administration seems to have an opposite prerogative. When Arizona passed a law to try to identify and detail illegal invaders in their state ("immigrants" is a less accurate term, since that implies people desirous of immigration), the Obama administration opposed it . When Arizona requested national guard help to secure their border, the Obama administration did nothing more than a token gesture . Moreover, instead of trying to help, they put up signs to keep American people out of th...