Comments on: What Perpetual Motion Machines and the Entitlement Mentality Have in Common

By: Mr Credit Card

Mr Credit Card — Wed, 20 Apr 2011 20:48:56 +0000

But I have every belief that we can reverse the perpetual motion and turn it the other way round. Unfortunately, that might happen when we are literally staring at the abyss! Perhaps when

1. Paper currencies become worthless
2. When other countries stop lending us money

But maybe we can reverse this sooner than we think. State governors now have to face “real spending decisions” because they are literally running out of money.

Perhaps I’m bring too positive.

By: Credit Card Chaser

Credit Card Chaser — Wed, 20 Apr 2011 20:48:56 +0000

If only politicians had some semblance of business sense rather than just experience as attorneys
.-= Credit Card Chaser´s last blog ..Are Credit Card Companies Evil if They Don’t Waive Fees on Haiti Donations? =-.

By: Steven and Debra

Steven and Debra — Wed, 20 Apr 2011 20:48:56 +0000

@Mr. Credit Card – California is the key state to watch in our opinion. It is a very large economy. If California becomes too big to fail and receives a federal bailout, we prolong the misery and continue the same moral hazard (dig ourselves deeper into the hole) we’ve witnessed with the big banks. Many states know exactly what they need to do, but they are hoping California IS too big to fail so they can fall in line right behind them and kick this can down the road just a little bit further. Can you imagine what would happen to a governor if all the other state governors picked a number and got in line for a bailout and one lone and very lonely governor took the position that the can kicking stops here and now? As Credit Card Chaser indicated, most politicians are lawyers and DELAY (kicking the can) is the only survival tool they have in their tool chests to protect themselves from their own mischief. Thanks for your comments!
.-= Steven and Debra´s last blog ..Guest Hosting at Len Penzo dot com =-.

By: Sarah

Sarah — Wed, 20 Apr 2011 20:48:56 +0000

I don’t understand what is wrong with this country. One year ago we were riding on a wave of hope and change. They voted for moving away from the status quo of individualism and now people have suddenly changed their minds again? With the election in Mass. probably derailing health care. Isn’t that the kind of change everybody wanted one year ago when our president was swept into power? Entitlements work. Europe uses them and nobody seems to be complaining.

By: Susan Tiner

Susan Tiner — Wed, 20 Apr 2011 20:48:56 +0000

I must respectfully disagree–Len knows that I would . What about Franklin D. Roosevelt’s idea that “We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence,” that “People who are hungry and out of a job are the stuff of which dictatorships are made” (per this speech http://www.worldpolicy.org/projects/globalrights/econrights/fdr-econbill.html also on YouTube at http://www.youtube.com/watch?v=UwUL9tJmypI)?

When individual citizens agree to pay taxes to guarantee a baseline of security for all, that’s the best protection of our liberty.

By: 20smoney

20smoney — Wed, 20 Apr 2011 20:48:56 +0000

Wow, very interesting post.

By: Massive Fail

Massive Fail — Wed, 20 Apr 2011 20:48:56 +0000

To Sarah… We already passed a form of socialized health care in MA and guess what. It’s already costing more than we expected and were led to believe and it is going to bankrupt us! The main point of this article is right. You can’t get something for nothing. Where is the money going to come from?

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By: Steven and Debra

Steven and Debra — Wed, 20 Apr 2011 20:48:56 +0000

@Sarah – We think people are starting to see through the spin. They are hearing about a recovery, but they don’t see a recovery. Many in the Obama camp (pre-election) also heard we would be bringing the troops home, but it appears the Bush Doctrine of pre-emptive strikes and occupation remain firmly in place. So, people become naturally skeptically when they hear one thing and see another. We really don’t think the status quo of individualism has been around in quite some time. The conservatives would like to think different, but the very reason they lost the election is because they’ve drifted so far left over the years and lost touch with their conservative roots. As far as Europe goes, they are literally coming apart at the seams. They are talking about a north-south split because of the impaired balance sheets of the PIIGS (Portugal, Italy, Ireland, Greece, and Spain). The ECB is claiming they won’t bail them out. The jury is still out on that score just as they are in deliberation here over bailing out California. What is interesting is that with all the focus on Euroland, Greece represents probably about 3 percent of the EU GDP while California represents about 12 percent of US GDP. We’ve got much bigger problems with California than Euroland has with Greece, but few are paying attention.

@Susan – no problems here with disagreeing. That’s what makes the world go around. We would be inclined to agree with FDR’s statement that individual freedom cannot exist without economic security. The only thing we differ with him on is how it is accomplished. He stated he wants individuals to be free, but then went about making an entire generation of people dependent upon the government and entitlements. That is not our idea of freedom. And, as Massive Fail implied, the bigger issue doesn’t really revolve around the rightness or wrongness of our varying opinions, on the issue of entitlements, but instead revolves around the sustainability issue. It’s not about what we might want, but rather what we can afford.

Thanks for the comments!

By: Mr Credit Card

Mr Credit Card — Wed, 20 Apr 2011 20:48:56 +0000

If the Feds bail out the states, where is the money coming from? Printing money and borrowing again?

re: health care (to those who want to throw this in). Hong Kong has a top tax rate of 17% (yes 17%). No capital gains tax! But they have a socialized medical system. So the world’s arguably most capitalist state with hardly any “social security or unemployment benefits that is comparable to any western industrialized nation” has a “socialized medical system that works with a top tax rate of 17% with no cap gain tax on the “supposed rich”! And they run a budget surplus and actually peg their currency to the $! The have a social security which is not pay as you go, but what you contribute is yours to keep. Why isn’t the media aware of this? Because perhaps we are in a perpetual state of “believing we are the best”.

To everyone in this country, cutting taxes, cutting expenses can be done. Perhaps we should simply hire the administrators from Hong Kong and give them a 8 year contract (2 temrs) to fix some of our federal agencies! I think paying them wall street CEO salaries might actually be “fair” if they can fix things here! So the dems and republicans must be confused about Hong Kong – hmmm – which ideology (17% top tax rate, no cap gains tax, socialized medicine, stable and fixed currency). Just goes to show practicality and not plain ideology works.

But if we can take HK as a blueprint, perhaps perpetual motion will work in our favor. Can you just imagine the sort of economic growth we will have if we have a taxation system like HK, a “relatively low cost” health care system, a “stable currency” (no printing money)..budget surplus with foreign exchange reserves (ie savings) and a social security that is not pay as you go.

It can be done, we just have to take the pain now and get the “perpetual motion going”.