Monthly Archives: December 2012

social security and basic reasoning

It appears both republicans and democrats would like to kill social security for those people willing to pay into the system. There is a continual move towards privatization of retirement accounts, while offering minimal retirement plans to people that are near welfare status.

There is a systemic reason why both republicans and democrats are attempting to kill social security for the middle class and above. When older able bodied people choose to retire, the labor supply diminishes. With a diminishing labor supply, the cost of labor goes up.

I doubt it is coincidental that in an era which the age requirement for social security has risen, the labor supply has been relatively abundant as opposed to the era before the age requirement was raised.

 WOW! It’s WebStory!
Advertisements

Nothing scientific here, but the yen’s fall may be the end wage deflation in America.

Is it really far fetched to say the yen had strengthened since the dotcom bust because investors moved cash back into treasuries for both Japan and America?  Consequently, a weaker yen may be signaling the thaw taking place in between the Japan-America connection.

 

http://www.reuters.com/article/2012/12/28/us-markets-global-idUSBRE88901C20121228

Yen extends fall, Asian shares capped by U.S. fiscal worry

awsome economist chart

http://www.economist.com/blogs/graphicdetail/2012/12/daily-chart-14

 WOW! It’s WebStory!

Simple tax fix

How about just restore social security tax and lift the cap to all income.  Everyone ends up paying their fair share.

Keep all the other goodies.

another month of stead job gain and what do they say..

http://www.cepr.net/index.php/data-bytes/jobs-bytes/unemployment-rate-edges-down-to-77-percent-as-job-growth-slows

Job gains have been steady for nearly two years.  Yet pundits such as Delong and Mish continue to trash talk.  They whine and complain that the job growth is not fast enough, and that most of the job gains are coming from lower wage earners.

While I have a certain amount of respect for the people I follow in the bloggosphere, they fall prey to the same problems mainstream writers have.  They continue to whine and complain about many healthy aspects of our economy.  Jobs are increasing, budgets are stablizing, and the nation is becoming self sufficient in energy.  Much of this is occuring in a nice slow steady pace.  A pace at which businesses, governments, and households can adjust in an efficent manner.

We should be celebrating stability, yet it seems as if the blogosphere and politicians don’t want it.

Inspect voter responses.  Jerry Brown and President Obama were not elected due to their party lines.  They were elected and re-elected for their relatively conservative political stances. (ie. non radical).

 WOW! It’s WebStory!