Despite his advanced age, it appears Warren Buffett has never heard the admonition, “Practice what you preach.” And it seems that some of his apologists haven’t, either. As you may know, Buffett has long been urging the government to seize more money from the rich, with the rationale that they have an obligation to pay more. In response, many traditionalists have told him to put up or shut up: If he truly believes in what he says, there’s nothing stopping him from writing a check to Big Brother as large as his socialism-espousing mouth. And now Buffett has a response:
Will a northern plains state axe the property tax? This June, residents of North Dakota will vote on a primary ballot measure which, if approved by voters, would eliminate local property taxes, retroactive as of January 1, 2012. There could be no better place than the Flickertail State — which has the lowest unemployment rate in the country and a thriving energy-based economy — to attempt this unprecedented experiment in government by the people.
While discussing on The View recently how North Korean heir Kim Jong Un enjoyed the luxury of being sent to a Swiss boarding school, Whoopi Goldberg said the following, “This is what happens with communism. It’s a great concept; on paper it makes perfect sense. But once you put a human being in power, it shifts. We saw it in Russia; we’ve seen it all over the world.”
One of the unintended consequences of the ongoing and accelerating crisis in the eurozone is that ordinary citizens are taking their money out of the banks and burying it. Lack of both confidence in the stability of the European economy and credible solutions to the crisis have led to the exit of currency from banks in Greece, Italy, and other European countries.
Last week's column started off asking: "What human motivation gets the most wonderful things done?" The answer is that human greed is what gets wonderful things done. I wasn't talking about fraud, theft, dishonesty, special privileges from government or other forms of despicable behavior. I was talking about people trying to get as much as they can for themselves.
Think about greed and racial discrimination. In 1947, when the Brooklyn Dodgers hired Jackie Robinson, why did racial discrimination by major league teams begin to drop like a hot potato? It wasn't feelings of guilt by white owners, affirmative action, or anti-discrimination laws. It turned out that there was a huge pool of black baseball talent in the Negro leagues. It became too costly for teams to allow the Dodgers to gain a monopoly on this talent. Black players won the National League's Most Valuable Player award for seven consecutive seasons. Had other teams not stepped in to hire black players, allowing the Dodgers to hire them, it might have given the Dodgers a virtual monopoly on world championships.
During South Africa's apartheid era, whites were in control, both economically and politically, and enacted some of the harshest racially discriminatory employment laws. There were job reservation laws that reserved certain jobs for whites only. Many white employers went to considerable lengths to contravene and violate those laws. White building trade unions complained to the South African government that laws reserving skilled jobs for whites had broken down.
The news that Eastman Kodak is preparing to file for bankruptcy, after being the leading photographic company in the world for more than a hundred years, truly marks the end of an era.
The skills required to use the cameras and chemicals required by the photography of the mid-19th century were far beyond those of most people — until a man named George Eastman created a company called Kodak, which made cameras that ordinary people could use.
It was Kodak's humble and affordable box Brownie that put photography on the map for millions of people, who just wanted to take simple pictures of family, friends, and places they visited.
As the complicated photographic plates used by 19th century photographers gave way to film, Kodak became the leading film maker of the 20th century. But sales of film declined for the first time in 2000, and sales of digital cameras surpassed the sales of film cameras just three years later. Just as Kodak's technology made older modes of photography obsolete more than a hundred years ago, so the new technology of the digital age has left Kodak behind.
While U.S. unemployment remains well above eight percent, the Obama administration is proposing a half-percent pay raise for federal employees as part of its 2013 budget plan, an Office of Management and Budget official announced Friday.
The modest, but rather untimely, pay increase will mark the first uptick since before the two-year federal pay freeze enacted in 2010, which was branded by the White House as a joint effort in which federal workers would share in the "sacrifice" with the private sector, as the economy remained persistently stale.
"A permanent pay freeze is not an acceptable policy," said a senior administration official, noting the impact of the two-year pay freeze on the two million workers currently on the federal payroll. "While modest, a 0.5 percent increase reflects the belt-tightening we must do in these difficult times."
Although the compensation boost rests far below the recent 3.6-percent cost-of-living adjustment for Social Security, the mere deed of inflating public-sector compensation may hatch some negative sentiment among private-sector workers, as well as the army of unemployed Americans who have yet to find work.
In the clearest indication yet, a high French government official confirmed last week that an FTT — Financial Transaction Tax — will be implemented by the European Union by the end of 2012, a year earlier than planned. Jean Leonetti, France’s minister for European affairs, said on television that “This is on the program for the next European summit [on January 30th]. Nicolas Sarkozy and Angela Merkel have decided on this and it will be put in place before the end of 2012.”
The tax would be levied, initially at least, on every financial transaction taking place by any entity with a connection to the Eurozone, and would be levied at the rate of 0.1 percent on shares of stock and bonds, and 0.01 percent on all derivatives transactions. It is estimated that the FTT would cover about 85 percent of all transactions between financial institutions such as banks, investment firms, insurance companies, pension funds and hedge funds. It is expected to raise, in the beginning, about $70 billion annually to help fund the EU.
It’s being touted as punishment for the banks that were allegedly instrumental in causing the economic meltdown, but would have no impact on ordinary citizens or small businesses. According to the European Commission, the FTT “would help to reduce competitive distortions in the single market, discourage risky trading activities [such as high frequency trading and highly leveraged derivatives contracts] and complement regulatory measures aimed at avoiding future crises.”
The announcement from the German Economy Ministry over the weekend confirmed that the long-awaited European recession has officially begun: German factory orders dropped to the lowest level in three years, down nearly five percent in the past month. The ministry also revealed that orders from outside the EU dropped by 10.3 percent.
Said Jennifer McKeown, an economist at Capital Economics Ltd. in London, “It’s quite clear that we’re heading into a pretty sharp downturn in Germany, which has been one of the strongest of the euro zone’s economies. Orders are very clearly on a downward trend, as is industrial production itself.”
The German economy is the fourth largest in the world, generating nearly $3.5 trillion in goods and services annually. Most of its trade is inside the eurozone, resulting in its position as the second-largest exporter in the world. Despite its strong economy relative to its neighbors, its debt-to-GDP ratio is 142 percent, and it is running an annual deficit of almost nine percent of GDP. It nevertheless retains its AAA rating from the three major credit rating agencies, which is strong enough compared to its eurozone partners to have caused a strange anomaly in the markets: yields on its six-month bonds have gone negative.
After nearly three years in existence, the Tennessee Tea Party disbanded Thursday, according to a message sent to members from the leaders of the group, Robert and Tami Kilmarx. While there yet remain other Tea Party-affiliated groups in the Volunteer State, the end of even one of them may augur a decline in the electoral influence of the Tea Party.
This perceived de crescendo of the Tea Party symphony is distinctly different from the loud and animating drumbeat that helped march scores of Tea Party-backed candidates into Washington in 2010.
There is no question that the Tea Party wasn’t without failure in the 2010 midterm elections (for instance, the defeats of Sharron Angle and Christine O’Donnell), but Sarah Palin became a household name and legitimate constitutionalists such as Rand Paul now sit in Congress, faithfully protecting the Constitution from enemies, foreign and domestic.
The voting trends developing in the presidential election campaign reveal the rapidity of the decline in Tea Party clout, however.