Poverty

The poverty threshold is an amount of money that is required to meet a certain minimum standard of living. That is, it is computed by determining what amount of money it takes to live in an apartment and eat at a certain minimum level. The government’s definition of poverty is not tied to an absolute value of how much an individual or family can afford, but is tied to a relative level based on total income received. For example, the poverty level for 2011 was set at $22,350 (total yearly income) for a family of four, and $10,890 for a single person. Here is the table:

Persons in
Family Unit
48 Contiguous States
and D.C.
Alaska Hawaii
1 $10,890 $13,600 $12,540
2 $14,710 $18,380 $16,930
3 $18,530 $23,160 $21,320
4 $22,350 $27,940 $25,710
5 $26,170 $32,720 $30,100
6 $29,990 $37,500 $34,490
7 $33,810 $42,280 $38,880
8 $37,630 $47,060 $43,270
Each additional
person adds
$3,820 $4,780 $4,390

(source: US Dept of Health and Human Services)

Currently, 12.6% of the US population, or 37 million people, are below this poverty threshold. So, could we fix this problem by merely giving every person below the poverty level a million dollars? The answer is no. The reason for this, is that as we pour money into the poor community, those people will by things, thus placing an inflated demand for products like food and housing on those communities. Additionally, no one will go to work, because they are all millionaires. The only way for businesses to produce the goods that are under such high demand is for wages to increase to the point where the nouveau riche will stop the buying spree long enough to go to work. These two factors will cause prices to rise until the supply/demand curve stabilizes at a new price level- a price level that is much higher than it was before we handed out the money.

This is why a war on poverty where the wages of the rich are confiscated and given to the poor can never be successful.

Not only that, but let’s face it: The United States doesn’t have a poverty problem. We are the only country in the world where the poorest portions of the population own cell phones and televisions. According to Nielson, 96.7% of American households own a television. Cellular ownership is high as well: 94% of Americans own a cell phone. Tell me again why my money needs to be confiscated so that someone else can get a free cell phone and television.

Republicans: America’s Taliban

See Florida Governor Rick Scott as he delivers his daily video address to the state. I know that the Republicans don’t kill and torture like the Taliban, so don’t bother sending me hate mail.

There is a parallel here that I want you to understand: There are many Americans who are completely turned off by the fascination that the Republican party has with preaching instead of governing. You need to keep your religious views to yourself when you are running the nation’s governments. We do not want to be preached to. Religion is like a penis, it is sometimes good to have one, just don’t go ramming it down people’s throats unless they ask you to.

Still going to vote for Democrats or Republicans?

News tonight is that Congress has reached an agreement on the debt:

In a conference call with his rank and file, Boehner said the agreement “isn’t the greatest deal in the world, but it shows how much we’ve changed the terms of the debate in this town.”

 Changed? What has changed? The deal makes cuts totaling $1.2 trillion over 10 years


Way to trim that budget, guys! When George W was president, Dems blasted him for the 2008 budget deficit: $485 billion. Obama’s latest deficit: $1.4 trillion. With the cuts suggested by today’s deal: $1.28 trillion, or more than 2 times the 2008 Bush deficit. Also, consider that since the cuts are to take place over ten years. This Congress and this President will have left office long before, meaning that the cuts will likely never actually happen.
 

Anyone who believes that either party has any interest in changing anything is rather foolish.

Government complexity

The government makes EVERYTHING more complicated. When it comes to performing maintenance, the US Navy has a complicated system in place (or did when I was in)called the Material Maintenance Management (3M) system, which controls all PMS (Planned Maintenance System). PMS is time consuming and overly complicated. The procedure for each maintenance action is written on an MRC (Maintenance Requirement Card.

 What makes the system so complicated and cumbersome is the fact that government bureaucrats have managed to turn the system into a set of procedures that make doing your taxes seem easy. Failure to follow the procedure exactly can and does end with sailors being courts-martialed. Maintenance is scheduled for each work center, and the work center supervisor schedules each person for his maintenance. Let’s take a look at a required daily maintenance activity (D-1R). We are scheduled to perform that activity toady, so we look for the MRC, on the Maintenance Index Page (MIP) and confirm that it is correct MIP by checking it against the LOEP (List Of Effective Pages) after checking the effective date to ensure that the LOEP is the current one. After locating the current MRC, we confirm that it is correct by checking its effective date against the one on the MIP.

So take a look at the card here. Granted, this one is a joke, but looks remarkably like the real ones. There is a section that has the information about the equipment on the card and the frequency of maintenance. Then an area that specifies who may perform the maintenance, and the man hours it will take to complete. There are sections that specify safety regulations that must be followed, along with a list of every tool that is required. If the card calls for a 6 inch screwdriver, you better not get caught using a 4 inch or an 8 inch screwdriver. The procedure is then listed, and it must be followed exactly as per the card. Failure to do so can land you in prison.

These are the numbskulls that are getting ready to run our health care system. How do you think that will work out?

The downgrade is near

From the Wall Street Journal:

Medicare, the program for the elderly, was supposed to cost $12 billion by 1990 but instead spent $110 billion. The costs of Medicaid, the program for the poor, have exploded as politicians like California Democrat Henry Waxman expanded eligibility and coverage. In inflation-adjusted dollars, Medicaid cost $4 billion in 1966, $41 billion in 1986 and $243 billion last year. Rather than bending the cost curve down, the government as third-party payer led to a medical price spiral.

According to the most recent government data, today some 50.5 million Americans are on Medicaid, 46.5 million are on Medicare, 52 million on Social Security, five million on SSI, 7.5 million on unemployment insurance, and 44.6 million on food stamps and other nutrition programs. Some 24 million get the earned-income tax credit, a cash income supplement.

By 2010 such payments to individuals were 66% of the federal budget, up from 28% in 1965. (See the second chart.) We now spend $2.1 trillion a year on these redistribution programs, and the 75 million baby boomers are only starting to retire.

On Monday night Mr. Obama blamed President George W. Bush’s “two wars” for the debt buildup. But national defense spending was 7.4% of GDP and 42.8% of outlays in 1965, and only 4.8% of GDP and 20.1% of federal outlays in 2010. Defense has not caused the debt crisis. 

The point of no return

One thing that I have always been interested in is the page in the instructions for your income tax form that tells you where the money comes from and where the money goes. I use the instructions for the 1040EZ here (pdf warning) and all you have to do is look at page 37 to see what I mean.

According to this page, the government, for fiscal year 2009, took in $2.105 trillion in taxes, with personal income taxes equaling 26% (or about $547 billion) of that. We spent $3.518 trillion, meaning that we borrowed $1.413 trillion. We borrowed three times what we collected through income taxes. This tells me that taxes have nothing to do with revenue. After all, if we can borrow $1.4 trillion, why can’t we borrow $1.9 trillion and simply eliminate income taxes altogether?

This is irresponsible spending at its worst. The Democrats think that the answer is to tax the income of the rich is the answer. However, according to the IRS (excel file- 2005 numbers) the top five percent of income filers made slightly less than $145 thousand per year. That means that the top 5% of earners make a combined total of $2.6 trillion per year. Even if we established an income cap of  $50,000 a year, and confiscated every dime that everyone in this country made over that amount, we would not be able to pay for the government we have now.

The Republicans think that the way to fix this is to cut spending. The size if the cuts that are needed is incredible. A 40% across the board cut is needed to balance the budget. The problem is that we cannot cut the interest that we pay on our debt. Our elderly will not sit still for any medicare or Social Security cuts, but those programs account for over a third of our spending. If we leave them alone, we need to cut Defense, welfare, prisons, and every other expense by 60%. Any politician who suggests the cuts that are needed will find his or her political career cut short.

We owe more money than currently exists. There is no way that we can pay it back, no way that we can stop borrowing, and no way out, except default. The system is broken, and we lack the will to fix it. We will soon lack the ability. Soon, the decision will be made for us. People will refuse to lend us money, and the people will become restless. The government, and the political masters who run it, will become increasingly desperate to maintain their power, and dictatorship will be the inevitable result. In my opinion, we are past the point of no return. We are witnessing history, the fall of the mightiest empire the world has ever known. I wonder if a thousand years from now if we will be studied like the Roman empires, or largely forgotten like the Achaemenid?

Prepare.

Civil rights, 1983 lawsuits, liability

After the incident that I last blogged about, where a Canton, OH police officer threatened a pair of citizens with physical force, I listened to the recording of the City Council President, where he gives his opinion on the whole incident:

The Council President states that the police officer’s actions were logical because the person involved was legally carrying a concealed weapon in a bad neighborhood at 1:30 in the morning, around prostitutes and drug dealers. Excusing the cop’s actions in this manner is a bit of a problem. Let me explain why:

42 USC 1983 provides that, “Every person who under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, Suit in equity, or other proper proceeding for redress

Meaning that the citizen involved gets to sue both of the officers who violated his rights by threatening harm to him, and will probably be successful. You can sue cities and counties under 1983 in what is called a Monell claim. Under Monell, to hold a municipality liable you need to show that your constitutional injury was caused by a policy or custom of the municipality. Monell liability can be established where a municipal official with final policy-making authority ratifies a subordinate’s unconstitutional conduct and the basis for it. The theory behind municipal liability in this context is that the acts of persons with final policy-making authority are considered to be the equivalent of government policy.

To establish municipal liability, a claimant must show a persistent and pervasive practice of the police department in failing to respond to police misconduct. While a single act of misconduct is insufficient to establish municipal liability, a person in a policy making position can show that the unconstitutional behavior of the municipality approved of the act, and thus made the act a de facto policy. In police brutality cases, the municipal entity’s liability can be established by showing that the city encourageed or authorized the conduct.

By stating that the incident that took place is to be expected when people carry concealed weapons in compliance with state law, he has authorized the officer’s conduct and opened himself and the city to a 1983 lawsuit. Damage awards in civil rights cases can be high. In 2007, a man won over three million dollars for damages he suffered from false arrest and other indignities by Oakland, California police officers. That award included punitive damages.

Officer Harless: background

By now, everyone in the gun community has seen the video where Officer Harless of the Canton, OH police department threatened to put “lumps” on a woman that he suspected of being a prostitute, and threatened to kill a man who was legally carrying a concealed weapon. The law in Ohio states that a permit holder must immediately notify an officer that he is carrying a weapon, if he is approached by that officer. The holder attempted to tell the officer three times, but was told to shut up before he could get the words out. When the officer finally finds out about the weapon, he flips out. See the video below:

I show you this video as background for my next post, where I show you how Canton, OH has officially screwed themselves.