Fair Income Tax Rates

The primary campaign strategy of President Obama to secure his re-election was to advocate that wealthy (successful) people should pay higher taxes. I assume that resonated because many assumed that the government having more money would provide them more benefits. That discounts the continuous television ads pointing out that Mr. Romney is a Capitalist, that he did not believe it was the place of government to provide free birth control, and the government should pay for Big Bird episodes. (And, yes, I’m oversimplifying.)

So here we are in the midst of a government-created economic crisis about whether the primary objective of Congress is to raise taxes on those who have been successful, to cut spending, or to do nothing and see what might happen next. My bet, and I make that bet without judging whether it is the best approach, is that our highly paid government officials will do whatever they think is best for their political careers.

Government officials from areas where Democrats dominate will hold out for tax increases on the wealthy and will not risk suggesting reform of entitlement programs that they know are economically unsustainable.  Republicans will feebly demand some sort of spending and entitlement reform. The country will continue to be awarded with a lack of leadership from the President and Congressional leaders. I predict President Obama will continue to campaign that everything is the fault of Republican leaders going back to George W. Bush. I also predict that he will be heartily awarded with applause for that meaningless rhetoric. Continue reading

Presidential Election and Aftermath

It is 9:14 P.M. Mountain Standard Time on election day November 6, 2012 as I begin typing, and the announcement just came that Ohio will cast its electoral votes for President Obama. That virtually guarantees that President Obama has won reelection. What next?

I expect that Republicans will be quite critical of themselves and Mitt Romney’s campaign strategy. They will ask why he did not mention Libya in the foreign policy debate when there was ample evidence that the Obama administration bungled the security for the consulate by responding to requests for additional security by reducing the number of security agents. They then covered up the terrorist attack that resulted in the death of the ambassador and three other Americans by repeatedly claiming the attack resulted from a spontaneous demonstration. The only reason to cover up the truth was that the facts would be embarrassing to the administration. The focus was protecting President Obama’s chances for reelection, and the facts of what resulted in the four dead Americans might have been “problematic.”  The cover story succeeded because Mr. Romney did not make it an issue.

On a societal note, I find it distressing that we have reelected a president whose campaign was almost exclusively based on advocating that people who earn more should be taxed at higher rates. His campaign worked despite the flaw that it won’t work. Wealthy people already pay most of the taxes, and even if you take all of their money it won’t solve the budget deficit. The only way to control the deficit is to staunch the government thirst for more and more spending while getting out of the way of economic development. Economic development is the key. Romney’s approach would have encouraged entrepreneurs to develop businesses, the business would pay taxes, the employees would pay taxes, and the government would have more income. The majority of voters went with the guy who promised to raise taxes on people other than themselves. Continue reading

Another Reset in Russia and U.S. Relations

Diplomats had a good time three years ago when Hillary Clinton gave Russian Foreign Minister Sergei Lavrov a “mock reset button” to symbolize U.S. hopes to improve relations with Moscow. The big news at that time was that the “peregruzka” label on the button that was intended to mean “reset” instead translated to “overcharged” or “overloaded.” The presentation of the button was said to have been in response to one of Vice President Biden’s gaffes. This one had something to do with the new administration wanting to reset ties with Russia after years of friction.

The recent termination of a U.S. aid organization’s activities by the Kremlin represents an ominous reset in relations. The September 20, 2012 English version of Pravda by Oleg Artyukov reported that the “…decision to terminate the activity of the United States Agency for International Development, USAID, in Russia has expectedly caused a great deal of noise. Human rights advocates are in shock…” The Russian Foreign Minister said the decision to shut down the agency was made “…due to attempts of the agency to influence political processes, civil society institutions, and elections…”

The agency had distributed $2.7 billion in Russia since 1992.  A State Department spokeswoman said, “…not very confidently…” that a third of the money went to “…development of democracy.”  A New York Times article by David M. Heszenhorn published in the September 23, 2012 Denver Post said the money funded “…programs touching nearly every facet of society in the former communist state — fighting the spread of tuberculosis and HIV, developing judicial systems and training lawyers and judges, promoting child welfare, job readiness, youth engagement, human rights and democracy, even helping modernize the electric grid.”

It is apparent there is justification for the Russian accusation that the agency was being used to meddle in Russia’s internal affairs in addition to all the positive activities. An association that monitors elections in Russia called “The Voice” put out a statement that “The hastiness and sudden nature of this decision is apparently related to the elections on October 14.” There are continuing protests about that election, and Vladimir Putin has sent another warning to the protestors.

The U.S. media coverage of the story is perhaps as interesting as the story itself. The story was published on page 23A of the Sunday Denver Post, and I found little else about it except on the English Pravda site.  Senator John McCain described the closure of the USAID mission as “an insult to the United States and a finger in the eye of the Obama Administration.”  Is it possible the U.S. media doesn’t want to publish news of a major setback to Mr. Obama’s foreign policies when there is an election coming up?

Romney Remarks About Voter Dependency

Mitt Romney made the astonishing mistake of speaking freely at a private fund raising event. How could someone who has campaigned for so long have forgotten that everything is says in public will be recorded and analyzed for possible anti-Romney ads? Also, how could he have gotten his facts wrong?

I won’t bother to look for a link to add for the comments, because they are everywhere. I haven’t seen the Obama ads quoting their favorite parts, but I’m certain that’s because I haven’t watched much television in the past couple of days. He said, “There are 47 percent of the people who will vote for the president no matter what. All right? There are 47 percent who are with him, who are dependent upon government, who believe they are victims, who believe the government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, you name it. That that’s an entitlement. And the government should give it to them. And the government should give it to them. And they will vote for the president no matter what. These are people who pay no income tax. Forty-seven percent of Americans pay no income tax. So our message of lower taxes doesn’t connect. So he’ll be out there talking about tax cuts for the rich. I mean, that’s what they sell every four years. And so mu job is to not worry about those people. I’ll never convince them they should take personal responsibility and care for their lives.”

People who don’t pay taxes either are those who don’t make much money, have more deductions than income, or have good advisors who can see that income is sheltered from taxes (such as income from tax-free municipal bonds.) Many of those who don’t pay taxes are elderly and young people who can’t find jobs other than perhaps a low-paying part time job. I expect that some portion of those people will be more attracted to Romney than to Obama. I do see that Mr. Obama has a solid 47 percent of the vote, but a large part of that number are people who are loyal liberals/progressives/Democrats. Many of them are very well paid and pay significant amounts of taxes. I’ve seen data that well over fifty percent of lawyers voted for Mr. Obama.

I believe Mr. Romney was onto something. I do think it is true that Mr. Obama believes a primary role of government is to redistribute wealth to “make things fair.” I also believe that there are many voters who will vote for him for that very reason, and that his only challenge is to make certain that those who think he will look out for their “entitlements” will go to the polls.

What Mr. Romney should have done was to read or paraphrase a quote from Thomas Jefferson. “The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.” Or he could have paraphrased the quote from Adrian Rogers, “You cannot legislate the poor into freedom by legislating the industrious out of it.  You don’t multiply wealth by dividing it.  Government cannot give anything to anybody that it doesn’t first take from somebody else.” He also could have mentioned that the top ten percent of earners pay 71 percent of income taxes. Mr. Obama says that isn’t enough to be “fair.”

Climatism!

climatismThe subtitle of this excellent, well-researched book by Steve Goreham is “Science, Common Sense, and the Twenty First Century’s Hottest Topic.” The book is over 400 pages long including notes and references. It provides both practical and technical details disputing the insistence that “The Science is Settled, Man is Causing Global Warming.” The book presents ample evidence that the science is far from settled and that man has had little impact on climate. However, there is a dire warning that you will be labeled a “Denier” if you question the politically correct positions. Those who have worked diligently to develop the “global-warning-disaster created- by-man-scenario” have invested their reputations in that outcome. They will eagerly attack anyone who has the audacity to ask, “But is it supported by science?” Science at one time was dependant on freedom of thought and criticism that required explanation based on facts. On this subject, questioning the legitimacy of the predictions is equivalent to when people were accused of being witches and treated badly. (This is my comment, and is not in the book.)

The Author’s Note points out that people aren’t shocked when the five day weather forecast isn’t accurate, but are willing to accept that the Intergovernmental Panel on Climate Change (IPCC) of the United Nations knows what the climate will be in 2100. The dominant public assumption is that the IPCC predictions are accurate, but the number of scientists who question the predictions has grown rapidly despite the attacks they know will be leveled at them for being “skeptics” or “deniers.”

The author proposes the title Climatism for the ideology that man-made greenhouse gases are destroying Earth’s climate, “…an extreme form of environmentalism that is using the natural climatic changes of Earth to re-define our societies.” Those who advocate that ideology want to limit population growth and replace all hydrocarbon-energy production with solar and wind power. What they don’t mention is that those energy sources cannot provide even a fraction of the energy produced by hydrocarbons, which means that society will have to do without. There has been a slight warming, but evidence is presented that the cause is likely natural and has nothing to do with the activities of man. ”

If global warming is from natural causes, then all efforts to stop the Earth from warming are not only futile, but destructive to our way of life and economic prosperity of the developing nations.”

No book on climate change would be complete without an analysis of Al Gore’s “An Inconvenient Truth.” A judge in London ruled that the film could be used as part of school curriculum, but the teachers must point out there were nine scientific errors or assertions not supported by scientific evidence. The nine corrections did not include mention that the film does not point out that the carbon dioxide increases lag the temperature increases. Therefore, temperature increases are the cause of carbon dioxide increases in the atmosphere (carbon dioxide is less soluble in warm ocean water). The basis of the climatism ideology that man’s generation of carbon dioxide is the cause of climate change is therefore false from the beginning. That didn’t stop Dr. James Hansen, an outspoken climatist from saying, “CEOs of fossil energy companies know what they are doing and are aware of long-term consequences of continued business as usual. In my opinion, those CEOs should be tried for high crimes against humanity and nature.”

There is a summary of the eight disasters that climatists predict with descriptions of why the predictions are already known to be incorrect. The dominant disaster predictions are rising sea levels (the sea has had a steady rise of 6-7 inches per century), devastating hurricanes (frequency and strength have not increased) and increased famine and death from droughts and floods (droughts and floods have not increased). Of course there is the concern about polar bear drowning, although polar bear populations have doubled since 1950. One of my granddaughters read that increased carbon dioxide will lead to acidification of the oceans and coral bleaching, but the actual data indicates the increase in water temperature and is having a positive effect on coral growth.

It is true that the climate will change just as it has always changed. The Medieval Warm Period occurred from about 900 to 1,300 A.D., and Vikings were able to settle and prosper in Greenland. The climate then moved into the Little Ice Age, and the last written evidence of the settlement was in 1408. The year 1816 is known as the “Year Without a Summer,” and that is the only known instance of a missing oak tree ring.

Chapter 5 presents data that, not surprisingly, solar activity is the main driver of global temperatures. “The scientific results…indicate that the varying activity of the Sun is indeed the largest and most systematic contributor to natural climate variations.” “There is little doubt that solar-wind variability is the primary cause of climate change…Once the IPCC comes to terms with this finding, it will have to concede that solar variability provides a better explanation of…warming than greenhouse gases.” Conversely, solar activity has declined. By April 2009 the sun had hit a 100-year low in sunspot activity and a 50 year low in solar wind pressure.

The saddest bit of evidence offered by the book is the discussion of Dr. Michael Mann’s infamous “Hockey Stick Curve.” The actual record of temperatures from about 900 A.D. is shown along with the modified graph that became known as the “hockey stick” on page 149. The actual graph shows the Medieval warm period and Little Ice Age with a slight upward trend in the late 1900s. The “hockey stick” graph shows basically unchanging temperatures until a sudden spike upward to much higher than anything that had been measured in a thousand years. It is said the Mann data “…contains collation errors, unjustifiable truncation or extrapolation of source data, obsolete data, geographical location errors, incorrect calculation of principal components, and other quality control defects.” In other words, the graph was and is a fraud.

The climate research community was shaken when an unknown hacker downloaded and posted more than a thousand documents from the University of East Anglia, the “…world’s leading source of global temperature information.” The emails revealed “…a high level of bias toward man-made warming…” One email quoted Dr. Kevin Trenberth of UCAR lamenting a cooling trend didn’t match predictions and referred to it as “…a travesty…”

There are detailed discussions of the flaws with solar, wind, and biofuel energy production. I won’t detail them here to be consistent with my goal of keeping reviews to two pages or less. I will jump ahead to pages 393 -394 where the story of the P-38 “Glacier Girl” is told. A flight of planes being sent from the U.S. to Britain in WWII was forced to land on the ice of Greenland. An expedition set out in 1981 to retrieve the planes from the well-documented location. The planes were eventually found under 270 feet of solid ice.

Climate Change Continues

I’ve written in previous blogs that I think Al Gore and the others who pound the drum of manmade global warming should change the title of their mantra to “climate change.” They would finally be right this if they predict climate change, because the climate has always changed and it always will. The warnings in the 1970s were that man was going to create a global cooling climate disaster. The climate did change, but there was a warming trend instead of the predicted cooling. Some researchers responded by developing computer models that correlated warming temperatures to carbon dioxide concentrations in the atmosphere. They never mention the oceans warm when the sun is more active and carbon dioxide in the atmosphere increases. Man has no control over the warming of oceans that causes higher levels of carbon dioxide in the atmosphere.

A recent Denver Post editorial took both Barrack Obama and Mitt Romney to task for not proposing more aggressive actions to battle climate change. Much of the basis for the editorial is the low level of Arctic ice coverage. The Sea and Ice Data Center indeed does show that ice levels dropped below the average levels and the 2007 levels beginning around the first of August. I expect the Post was also influenced by the record number of over 90 degree days this summer. However, there are other indications that “catastrophic global warming” is not occurring. A web site that has numerous graphs of the average temperature of Gulf of Mexico waters shows 2011 had one of the largest drops in temperature in eighty years.

The book Climatism reviewed on that link of this web site is a good place to start if you want to read details of why man is not the cause of global warming and most if not all of the efforts to develop alternative energy sources are doomed to fail because of simple economics.

Carbon dioxide emissions in the U.S. were at a twenty year low last year because significant amounts of power are being generated with recently inexpensive natural gas. Power generated with natural gas creates half the carbon dioxide compared to coal. One report says that it is expected there will be 175 coal burning plants will be replaced by natural gas plants over the next five years.

Michael Mann of the Earth System Science Center at Penn State University seemed to be grumbling about the improvements created by the shift from dirtier-burning coal to natural gas. He commented that “ultimately people follow their wallets on global warming.” Roger Pielke, Jr., a climate expert at the University of Colorado had a bit different take. He said, “There is a very clear lesson here. What it shows is that if you make a cleaner energy source cheaper, you will displace dirtier sources.”

Some environmentalists aren’t happy about the good news. They don’t like the “fracking” that has resulted in production of huge amounts of natural gas and caused the price of the fuel to drop by more than half. They believe the practice will pollute underground water sources and cause leakage of methane to the atmosphere despite the belief by many government officials that the practice is safe if done properly. My suspicion is that those who are grumbling are mostly worried that there will be even less emphasis on development of expensive solar and wind generated energy. “Installation of new renewable energy facilities has now all but dried up, unable to compete on a grid now flooded with a low-cost, high-energy fuel.” The massively advertised “shift to renewable energy” has added scant amounts of power generation. “Wind supplied less than 3 percent of the nation’s electricity in 2011…and solar power was far less.”

I won’t be in the grumbling camp. I find it refreshing that ingenuity and economics have resulted in improved air quality.