Is the IRS Coming for You?

This week, while you were busy working, President Biden signed what he says is, “one of the most significant laws in our history.”

It’s called the Inflation Reduction Act (IRA) of 2022.  The name implies it will reduce inflation.  How pumping $750 billion into preferred sectors of the economy will reduce inflation is unclear.

But what is clear, and as confirmed by the Congressional Budget Office, is that the bill will force working-class Americans to pay an estimated $20 billion more in taxes over the next decade.

For the Biden administration, this is all part of its plan to consolidate power, push its socialist agenda, bury workers with crushing taxes, and destroy the middle class with soaring inflation.  The Build Back Better Act may have failed.  But the IRA, which cobbles together much of the trash from BBB, is now federal law.

We’ll have more on this in just a moment.  But first, some context is in order.

Where to begin…

Money provides the means for trading available goods and services.  If a person wants to increase their portion of goods and services, they must first increase their productivity.  They can do this in one of two ways.  By working harder.  Or by working smarter. Continue reading

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Why Labor Productivity Has Collapsed

Recession.  Raging consumer price inflation.  A Presidential administration that seeks to confuse and obfuscate what’s really going on.  These are the realities facing American workers in the dog days of August circa 2022.

For example, this week the Bureau of Labor Statistics released the Consumer Price Index results for July.  According to the government number crunchers, the CPI decelerated from an annualized rate of 9.1 percent reported for June to an annualized rate of 8.5 percent in July.

Gas prices fell 7.7 percent from one month ago.  But are still up 44 percent over one year ago.  Food prices rose 1.1 percent on the month and are up 10.9 percent over the past 12 months.  Rents also rose 0.7 percent in July.

President Biden, a man who alternates between being a world class liar and a world class moron, took the opportunity to tell an untruth the American people:

“I just want to say a number: zero.  Today, we received news that our economy had 0 percent inflation in the month of July – 0 percent.  Here’s what that means: while the price of some things go up – went up last month, the price of other things went down by the same amount.  The result?: Zero inflation last month.” Continue reading

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What Happens When Work Doesn’t Pay

Now there comes a time
In every man’s life,
Where decisions have to be made
Whether to toil, to labor,
Or just plain piss
Your days away, away, away!

Caught in a Jar, Dropkick Murphys

Flat Out Wrong

Jobs data reported this week by the Bureau of Labor Statistics show that, as of the last business day of June, there are 10.7 million job openings.  Hence, according to the numbers, there are many more available jobs than willing workers.

At the same time, the U.S. unemployment rate’s just 3.6 percent – near a five-decade low.  So, by the numbers, the economy is at full employment and still overflowing with jobs to be filled.

The U.S. economy couldn’t possibly be in a recession, given this robust and healthy jobs market, could it?

Not in the eyes of Treasury Secretary Janet Yellen, who recently stated the economy isn’t in a recession because, “job creation is continuing, household finances remain strong, consumers are spending and businesses are growing.” Continue reading

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Paying the Price for Krugman’s Terrible Mistake

Clear economic thinking and lucid communication via the written word tumbled out of fashion nearly 100 years ago.  The fall from grace was triggered by the 1936 publication of John Maynard Keynes’ The General Theory of Employment, Interest and Money.

Not only is the book rigorously indecipherable.  It also has the ill-effect of making those who read it dumber.  Unfortunately, Keynes’ drivel became the standard for foolish economic thinking, which still infects economic discourse to this day.

Many politicians and establishment economists remain enamored with Keynes’ gibberish.  They love what it offers.  In short, it provides academic rationale for governments to do what they love to do most – borrow money and spend it on ridiculous programs.

For example, Keynes advocated filling bottles with money and burying them in coalmines for people to dig up as a way to end unemployment.  According to Keynes, this would provide jobs and money for the unemployed.  Somehow, these public works egg hunts would create an economic boom and make everyone rich. Continue reading

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