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- 17. May 2012: Tricky Tricks with Statistics
- 14. May 2012: The Persistence of Memes
- 6. May 2012: Don’t Look at the data in this Post on Global Warming!
- 18. April 2012: Trayvon and the Law
- 3. April 2012: Connect the Dots
- 31. March 2012: An Addendum to my SCOTUS/ACA Prediction
- 28. March 2012: A Prediction on the ACA Supreme Court Case
- 24. March 2012: The Mitt Romney/Etch-a-Sketch Link is Deeper Than You Think
- 24. March 2012: A Comment on Romney’s Illinois Victory Speech
- 20. March 2012: An Apple a Day Keeps the Tax Man Away
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Tricky Tricks with Statistics
17. May 2012 by Mad Sociologist.
Don’t Be Fooled by Conservative Hocus Pocus Calling Itself Statistics
I have theory that I call the Reflective Attribution theory. This theory stipulates that people tend to impute their own motives and attributions onto others. For instance, according to this theory one might predict that those people who are inclined to lie are also people who are do not trust others, because they assume that “because I lie, others lie.” The opposite is also the case. Honest People tend to be trusting of others.
So, I can’t help but apply this theory in my everyday life. The other day I posted the following data on my Facebook (click the image for the source).
This is an answer to the claim that President Obama is overseeing an unprecedented growth in the federal government. The underlying claim is, of course, that if Obama is allowed to continue this massive federal government increase we will soon be under the thumb of a monolithic and oppressive institution. The data above, showing the growth of government as a percentage of GDP compared to the growth of the private sector, belies this claim. Yes, when you control for state and local governments there is some growth in at the federal level. But unprecedented? If you want precedent just look at the preceding president (yes, I did that on purpose).
Which brings me to my theory. A friend of mine responded with a gotcha. An article that shows, beyond a conservative doubt, that President Obama has, in fact, grown the government. Over the years I’ve noticed that conservatives are very leery of statistics. For someone like me, who lives on statistics, this strikes me as odd. One person, years ago, told me that she does not trust statistics because “statistics lie.” Actually, statistics don’t lie. People lie. Sometimes they use statistics to do it. This is something that I see from both sides of the political spectrum, but if I am to be honest, I notice that the right side is the overwhelming leader in the quantity of “damn lies and statistics.”
The data presented by the article can be summed up in the following graph.

Yep. That’s a bigger government all right. It’s simple. It’s succinct. A nice straight line. I think conservatives like straight lines. However, it is not descriptive of the Obama Administration. In short, it’s a deceptive use of statistics. It’s true, mind you. This stat is not, technically, a lie. But the intent behind the stat is certainly to deceive.
The article cited the Bureau of Labor Statistics as its source. So went to the BLS website, looked up the data, and put together the same chart. Only this time I filled in the gaps between January of 2009 and April of 2012. I got the following (program glitch. I used January of 2009 and then the succeeding Aprils of Obama’s administration. The computer added the intermediary months on its own.):

As you can see, the overall data is the same, but filling in a few missing dates paints a very different picture. Yes, the Obama Administration has overseen a net increase in the size of government as measured by the number of employees. The bulk of that increase, however, peaked two years ago. Since then, President Obama has overseen a reduction in government employment. Embarrassing.
This is a common technique in claims making—showing only the statistics that proves your point. A pundit can be technically honest about this and still lie. Another technique is to offer a stat by itself with no comparative data against which to measure it. Notice that the New York Times data above offers a comparison to other presidents. That’s called responsible reporting. Could the Times have been more comprehensive? Every work of research can be more comprehensive. Let’s assume that the New York Times was under practical constraints to do so.
To remedy this with regard to federal employment, I decided to offer a comparison between President Obama and President W. Bush. Now I recognize that my more extreme conservatives consider President Bush to be a Manchurian Progressive (in retrospect, of course. During his presidency he was practically the second coming). Regardless, I would wager that, given a choice between Presidents Bush and Obama, these same people would vote for Bush. Please correct me if I’m wrong. I have no data to support this claim. Regardless, the claim is that Obama’s expansion of government is “unprecedented” and employment is the variable offered to prove this.
Alas, it appears that comparative data also refutes the unprecedented growth claim.

Then, just for fun, I thought, ‘let’s compare Obama to the Conservative God’s right hand.’ Yep. That’s right. Ronald Freakin’ Reagan. How does President Obama’s expansion of Government compare to President Reagan’s during the same time period. This was a little trickier. The best stats I could find that was relatively easy to access was a measure of end of year civilian federal employment for President Reagan, so that is what I used for President Obama. I used December of the year preceding each administration as an estimate of where each president started. To wit, I compiled the following graph:

Well what do you know? Three years into his administration, the Gipper had the bigger government. True, he did oversee a decline in his first two years, but more than made up for it in his third. And this growth in government continued for Reagan right up to his farewell address.
Truth be told, this data can be looked at in a different way. One could suggest that if you look at the net rate of growth between President Reagan’s and President Obama in their first three years, Obama’s was larger. Well, yeah, but bigger is bigger in this issue and Reagan had the bigger government. Again, the growth of Obama’s government is far from unprecedented.
Of course, looking at employment and change as a percentage of GDP are only two of many ways to analyze the size of government. It so happens that this morning I was reading the Krugman blog and noticed this graph, which speaks to my topic. So I stole it.
So back to my original thesis about the Reflective Attribution. It’s no wonder that conservatives are so leery about statistics. Either they don’t understand statistics, and therefor assume that nobody understands them, or they assume that all claims makers are equally disingenuous with their use of data. This is an unfortunate state of affairs, for understanding data, regardless of the nature of that data, is crucial to developing an objective and rational understanding of the issues. As a sociologist, I know that very often what we believe to be true is, in fact, false. If we base our decisions on nothing more substantial than what we believe to be true…well…the road we are paving can only have one destination.
Posted in Politics, Sociological Imagination | Print | No Comments »
The Persistence of Memes
14. May 2012 by Mad Sociologist.
The Long Life and Career of Reagan’s Welfare Queen
A colleague of mine, responsible for selling items at my high school, explained to me that some students try to con her out of her wares. They will use such gimmicks as claiming that they already paid, but did not receive the item, or maintaining that their parents or another party purchased the item and they are there to pick it up for them.
She was not clear about just how many students attempted this, but she was adamant about the nature of the problem. “It’s all of those kids who have spent their lives getting handouts. They think they are entitled to getting everything for free.” She leaned in close to me and astutely pointed out that “they can afford two hundred dollar cell-phones, though.”
She must have been especially astute, as I’m not sure how she knew that the students who were trying to get free stuff, in fact, received welfare at all, let alone all of their lives. Did she really keep track of the cell phones of such students? If so, how did she know that the students, themselves, or the parents, purchased the two hundred dollar phones? Perhaps, the phones were gifts, or provided by other family members? In other words, where did she get the data from which she drew the conclusion that those students who tried to con her were the children of welfare abusers?
Of course, she had no such data. What she had was a meme, a basic explanatory idea that has spread through American culture and often is taken as unquestionably true. The meme is not true. It is nothing more than an incarnation of Ronald Reagan’s famous “welfare queen,” presumably based on the story of a real welfare recipient who ingeniously ripped off the taxpayers to the tune of $150,000 a year. The welfare queen, however, is more a model than an actual person. She is a woman of color, often black, but increasingly Hispanic. She has multiple kids. She drives to the welfare office in her Cadillac to pick up her entitlement check.¹ She has been living like this all her life and has little incentive to work.
Reagan gave his famous “welfare queen” speech in 1976. A study published in 1979 by the Department of Health and Human Services revealed the so-called Welfare Queen was largely a myth. Welfare was not the easy route to the high life, as state disbursements were still below poverty level. Hardly an incentive to remain idle. Most welfare recipients in the 1979 study (USDHHS Aid to Families with Dependent Children: A Chartbook) had been receiving benefits for less than two years and almost seventy percent had been on the rolls for less than three years. The lifetime welfare recipient was a rarity. Welfare recipients had only about two children. They were not pumping out the babies to increase their check, as the additional welfare income was insufficient for covering the costs of added children.
As for creating a cycle of dependence and a loss of incentive to work, research around that time was clear. There was no difference in the work ethic between poor people and middle class people. Even during the 70’s and 80’s, most poor families had a history of work, and were often cast into poverty as a result of job loss, disability or desertion of a spouse.
Were there people who abused the welfare system? Of course. An intrepid enough scammer can game or rig any system created by man. Perhaps there were some who may have deserved the title of Welfare Queen, though at the time most poor families were male headed, but they were a significant minority. Less than .5% of welfare cases were referred for fraud prosecution. The study was not clear as to how many of the defendants were found to be guilty.
In 1996 the Welfare Queen took a significant hit in her ability to milk the taxpayer and spend her life on the dole. Since 1996 states have been committed to reducing their caseloads, often without regard to economic contingency such as, oh, a collapse of the global economy. The poor were expected to find jobs even if there were no jobs to find. In Florida, the maximum allowable time receiving Temporary Assistance for Needy Families is forty-eight months, at which point the family is no longer eligible, regardless of work status. Currently, 92% of welfare recipients in Florida have been on the rolls for two years or less.
In four years the Welfare Queen can look forward to receiving a whopping $303 a month to satisfy her lavish lifestyle. How will she ever spend all of that money? Of course, she can always drive her Cadillac to the welfare office. If it’s a 1995 Cadillac. In the state of Florida vehicle assets can be worth no more than $8,500.
Yes, Mike, but you are forgetting that there is no limit for children. The Welfare Queen simply pops out the kids every time her eligibility is up and she gets to extend her time on the dole. Well, perhaps someone should tell her that, because the average welfare household in Florida, as well as in the has less than two children and less than three household members.
Memes, or what we sociologists like to call Social Constructs, often take on a life of their own. Ronald Reagan’s construction of the Welfare Queen has been shaping our understanding of the poor in America for the last thirty-seven years, and we thought she was unemployed. Unfortunately, the constructed meme was based on a faulty premise…a lie. When we accept, without question, a flawed or distorted meme, that construct shapes our perceptions of the world. In the case of my colleague, her acceptance of the Welfare Queen myth, whether she knew it or not, had a reflexive impact on her own understanding of reality. The construct influenced her into accepting as fact a distortion of reality that reinforced the original construct.
Too often, such constructions become the premise for policy that has negative implications for real people.
_________________
¹ Indeed, the “driving the Cadillac to the welfare office” meme has taken on a life of its own. Many people whom I’ve spoken to claimed to have seen this phenomenon themselves.
Posted in Sociological Imagination, Social Commentary | Print | 1 Comment »
Don’t Look at the data in this Post on Global Warming!
6. May 2012 by Mad Sociologist.
Global Warming? What Global Warming?
(Click the image for the source)
Nothing to see here, folks. Go back to what you were doing.
This is all a socialist plot!
Who are you going to believe? A bunch of stupid climate scientists or well respected, right-wing think tanks?
You know how those environmental hippy whackos are!
No changes are necessary.
Posted in Environment | Print | 1 Comment »
Trayvon and the Law
18. April 2012 by Mad Sociologist.
On Learning from Tragedy
If we are to gain anything positive from the tragic shooting death of Trayvon Martin it must be not only in the re-evaluation of the infamous Stand Your Ground laws (SYGs) that are spreading throughout the country, but rather in an assessment of law in general. The Trayvon Martin case highlights the inherent flaw in this and many other popular laws.
The nexus of this flaw is the assumption that in all criminal interactions there is a clear good-guy (victim) and a clear bad-guy (victimizer). The victim is righteous in his actions, while the victimizer is intent on villainy. Those who wrote, sponsored and voted for the Stand Your Ground law in Florida were intent on leveling the obvious injustice in requiring the good-guy to run away from the bad-guy. Clint Eastwood never ran. John Wayne never ran. If I’m in my home, watching television, when suddenly the door bursts open and a thief/murderer/rapist enters, I should be within my rights to shoot him without question.
It’s easy, especially by virtue of American culture, to embrace such an idea. However, human interaction is rarely ever that clear and the roles taken on by people are, more often than not, not so dichotomous as the victim/victimizer roles seen on television. Human interaction is wrought with complexity, emotion, pre-conceived notions, personal history, biological imperatives, socialization, cultural lensing, faith and a myriad other variables. The sinner oft justifies his iniquity, and the villain is never evil in her own eyes.
Such was the case with Trayvon Martin and George Zimmerman. It’s likely that the victim/victimizer roles in this interaction were hopelessly confused. It’s impossible to know exactly what transpired between these two actors, but let’s assume that neither Trayvon nor Zimmerman are evil.
Zimmerman is described as a self-appointed neighborhood watch. Apparently, his neighborhood was subject to break-ins and theft, so Zimmerman took it upon himself to help. In any other context we might define this behavior as community oriented, even altruistic. He wanted to be a police officer, revealing a protective “instinct” if you will. Perhaps there are more selfish motives, an overblow sense of authority and the pursuit of status. Indeed, it is likely that Zimmerman held culturally reinforced ideals of manhood.
He sees Trayvon, an unfamiliar face, walking through the neighborhood. And let’s not pander and mince our words. He saw an unfamiliar black face in the neighborhood. Trayvon was a young black man who did not belong. Perhaps Zimmerman is not a racist, but the society in which he was socialized is racist. We cannot separate paradigms of race from our understanding of events.
Regardless, Zimmerman assumes that Trayvon is up to no good and calls the police. He knows, however, that the police will not respond in time. Trayvon is getting away. Maybe there is history of slow response time among the police. So, Zimmerman takes it upon himself to follow Trayvon and ensure that he is caught, guarantee that justice is done. From his perspective he is being a responsible neighbor, citizen and man.
Trayvon had his own perspective, however. This is often neglected in reporting this story, mostly because Trayvon is incapable of offering his perspective. Trayvon is a young man imbued with societal paradigms of manhood, right and race. He notices that an unknown man is following him. Interestingly, by virtue of the Stand Your Ground law, Trayvon was in his rights to stand his ground in the face of threat. How might this story have been different if Trayvon had a gun and used the Stand Your Ground law to justify shooting Zimmerman? Can we say that Trayvon had less of a right to stand his ground than Zimmerman?
Here’s where the details are lost to public knowledge, at least for now. We do not know the transaction between the two principles. It is not, however, a stretch to assume that a confrontation ensued. Trayvon’s girlfriend stated that he asked Zimmerman, “why are you following me?” Not an unreasonable question. Both men were hyped up on adrenaline, perhaps unwilling to back down. Zimmerman believed he had every right to protect his neighborhood; Trayvon was convinced that he had a right to walk down the street unmolested. Matters escalate. Perhaps they push each other, grab at each other. It’s dark. Each man is alone against a possible assailant. One man has a gun. The gun comes out. Anger. A shot. Tragedy.
Who is the good-guy? Who is the bad-guy? What are the parameters of the law in this case? Who had the right to stand his ground? How does the presence of a gun change the calculus of rights? The law was not drafted with such a complex interaction in mind. Yet most violent interactions align closer to this more complex story than to the storied victim/victimizer interaction. This story is that of two people acting within a matrix of decisions, actions and reactions that ended tragically.
Effective laws must take the complexity of human interaction into account. If they do not then the application of such laws can only compound tragic episodes.
Posted in Crime, Sociological Imagination, Social Commentary | Print | 1 Comment »
Connect the Dots
3. April 2012 by Mad Sociologist.
Join 350.org and connect the dots yourself. Global warming is real. It’s happening. And it’s our fault. And it’s our responsibility to do something about it.
Posted in Environment | Print | 1 Comment »
An Addendum to my SCOTUS/ACA Prediction
31. March 2012 by Mad Sociologist.
Preparing for the Worst
If I were President Obama, or the head his re-election campaign, I might, in a purely strategic and cynical way, hope that the Supreme Court does, indeed, strike down the Affordable Care Act.¹
I say this on the premise that an old adage is true, that people do not appreciate what they have until it is gone. As it stands, millions of people currently benefit from the ACA, though they don’t necessarily realize it. According to the Kaiser Family Foundation study (Linked in the first graph), 59% of respondents admit that they do not know enough about the ACA. Between 49% and 65% of respondents do not recognize key provisions of the law. In fact, 14% believe that the Supreme Court has already struck the law down!
However, once they start losing their subsidies, and preventive service, once their adult children are kicked off of their insurance, or they are denied payment due to pre-existing conditions, people will better understand their benefits under the ACA.
The right wing propaganda machine has effectively destroyed the legitimacy of the ACA in the eyes of the public. That’s not hard to do when a majority of people do not know what’s in the law. It’s also easy to do when health care advocates, like myself, are disappointed by the anemic outcome of what could have been a true reform, the passing of a moderate conservative idea. Such activists find it difficult to cultivate the necessary zeal to defend the law against extremely zealous attacks.
Despite general disapproval of the law, however, people largely approve of the actual provisions of the law—by overwhelming margins. Outside of the individual mandate, the specific elements of the ACA are very popular. Let’s face it, who like’s any “mandate”? However, if the more popular provisions of the ACA are to be sustained, the individual mandate is necessary. I don’t like it any more than anyone else, but it is the truth. Insurance companies cannot be required to sell insurance, a provision that 69% of respondents approved of, if people can simply wait until they are diagnosed to purchase insurance.
So if the ACA is struck down, that provides the Obama campaign a Marc Antony type opportunity to soliloquize over the bloody corpse of the ACA.
Conservatives are honorable people, and they say the ACA is evil. They must be right…
…but here is Mrs. Smith who was able to provide health care for her daughter who is just starting out in her career. Now here daughter must purchase her own insurance, without help, because her entry level position does not pay enough to secure those benefits.
But conservatives are honorable people, and they say the ACA is tyrannical. They must be right…
…but here is Mr. Jones, whose cancer was in remission because he was able to get care despite his pre-existing condition. Now his cancer has come back because he can no longer afford the treatments.
But conservatives are honorable people…

Few are satisfied with the American health care system. Sixty percent of respondents say that they would expect lawmakers to develop alternative health care reforms if ACA is struck down. More people would prefer the ACA to be expanded or kept as is over replacing it with a Republican proposal (ironic, since the individual mandate was a Republican proposal) or simply letting it go. Americans want health care reform. The elimination of health care reform, if the Obama administration can inform Americans of what they have lost, can be a rallying cry for even more viable reforms.
Unfortunately, in our musings about political strategy, we must not lose sight of the fact that loss of the ACA, as inadequate as many of us believe it is, would inflict a devastating blow against the uninsured. Mr. Jones above may make for effective political theater, but he still has cancer and will, most likely, die.
The greatest failure of Democrats and the Obama Administration is in allowing the right wing fringe to “educate” the public on the value of the ACA. Now the health of millions of Americans is speculatively in the hands of Justice Anthony Kennedy. Health care activists and the Democratic Party, at this depressing stage, have little else to do but hope for the best and prepare for the worst, hence this rather cynical post.
_____________________________________
¹I am neither of those, so I am not so hoping.
Posted in Health, Politics | Print | 1 Comment »
A Prediction on the ACA Supreme Court Case
28. March 2012 by Mad Sociologist.
Hope for the Best…Expect the Worst
We know the Affordable Care Act is constitutional. We don’t need the Supreme Court to tell us this. One could use the Elastic Clause and explain that the individual mandate is necessary and proper in today’s health care market, a market the likes of which was inconceivable to the Founding Fathers. Or there’s the Interstate Commerce Clause which is obviously applicable. After all, if I have health insurance in Florida and get sick in Georgia I use the same insurance, and if I don’t have insurance, then the people of Georgia pay with higher premiums. That this is even being heard by the Supreme Court indicates that the gig is up for Obama’s signature piece of legislation.¹
My prediction is that the corporate patsies on the Supreme Court will strike down the individual mandate, and thereby cripple the law. They will do so because that is what they are there to do, to destroy any attempt to create a level, working playing field for average Americans—even admittedly flawed attempts. As indicated by the Citizen’s United Decision, this is a mission that they take seriously.
Citizen’s United offers a glimpse into the future. Not only will the Supreme Court shoot down the individual mandate, but they will take the extraordinary leap of nullifying the Affordable Care Act in toto. Remember, Citizens United could have been decided in narrow terms, specifying that the specific documentary about Hillary Clinton did not constitute a campaign piece, therefore it’s release was not a violation of McCain-Feingold. But SCOTUS didn’t do that. They decided on the broader issue on the constitutionality of another perfectly constitutional piece of legislation—again, flawed.
How will they justify themselves? Think about the case of Summum vs. Pleasant Grove. In this case the Supreme Court ruled, on supposed constitutional grounds, that the city of Pleasant Grove could refuse to install a monument from the Summum Church in a public park despite allowing other groups to install their monuments, including a statue of the Ten Commandments. The court ruled against Summum, unanimously I might add, on the grounds that the decision to allow memorials from some contributors, but not others, in a public space is an exercise of government free speech. Government free speech? Where in the Constitution does it say that a government has rights? Isn’t the government supposed to speak for all of the people? The Constitution does say a little something about equal protection under the law, but the Supreme Court sees no need to reference actual tenets of the Constitution when they can just make up their own off the top of their heads.
That this decisions was unanimous is not a good sign. It indicates that the so called “liberal” justices are not beneath a wink and a nod to the conservative agenda.
In fact, since I’m just going with the worst case scenario, I’ll even go so far as to say that the decision will be unanimous.
Good-bye ACA. We hardly knew ye…literally.
_______________________________________
¹It’s no secret to my readers that I was not a supporter of the individual mandate and was bitterly disappointed in the Affordable Care Act.
Posted in Health | Print | 1 Comment »
The Mitt Romney/Etch-a-Sketch Link is Deeper Than You Think
24. March 2012 by Mad Sociologist.
Visit msnbc.com for breaking news, world news, and news about the economy
Posted in 2012 Election | Print | 1 Comment »
A Comment on Romney’s Illinois Victory Speech
24. March 2012 by Mad Sociologist.
The Ironies of Republican Rhetoric and History
I was watching Mitt Romney’s victory speech from Illinois. Well, I was washing dishes at the time, so I’m not really in a position to give an in-depth analysis. Overall, I think it was a well written and well delivered speech considering the audience.
One comment, however, stood out. Romney, of course, offered the requisite, mindless blather about big government, capitalism and “economic freedom.” He affirmed as historical fact that “Economic freedom is the only force that has consistently succeeded in lifting people out of poverty. It is the only principle that has ever created sustained prosperity.” So, it was no surprise that he assured his audience that he was “going to get government out of the way.”
The irony appeared shortly thereafter when he said, “We once built an interstate highway system and the Hoover Dam. Now we can’t even build a pipeline.” Leaving his reference to the Keystone XL issue aside for now, I was perplexed by his reference to the interstate highway system and the Hoover Dam in the same breath as he extoled eliminating government “interference” in the economy.
Of course, the obvious irony was that the Hoover Dam and the interstate highway system were government infrastructure projects. Romney castigated government for holding back the economy, suggested that he would get government out of the way, then punctuated his point by offering a counter-example to his own rhetoric. Hell, the Hoover Dam was largely built during the New Deal!
The audience applauded his astute observation.
That Republican administrations initiated these projects was the second irony. In 1928, Republican president, Calvin Coolidge, the guy who said, “the business of America is business,” signed The Boulder Canyon Project Act. This approved $163 million dollars to build what was then known as the Boulder Dam as well as associated engineering projects. According to measuringworth.com, that’s the equivalent economic cost of a $24 billion project today (2010 dollars). Almost 70% more than current expenditures on Temporary Assistance for Needy Families (dreaded welfare). Ultimately, the Boulder Dam was named after Republican president Herbert Hoover, whose administration was instrumental in the engineering and bidding process of the project.
In 1956, Republican president Dwight Eisenhower signed the National Interstate and Defense Highways Act. He allocated $25 billion for the first forty-thousand miles. This is the equivalent economic cost of $830 billion in today’s dollars (2010). That’s comparable to President Obama’s hated stimulus package. It was the single largest government program ever up to that time.
Now these Republican presidents, Coolidge, Hoover and Eisenhower, didn’t approve these expenditures because they were closet socialists intent on destroying freedom in America. They certainly did not support such massive government intrusions in the economy because they were anti-business. They approved these projects because they were good ideas regardless of ideology. A conservative in the 1920’s, 1930’s and 1950’s was able to embrace good ideas such as significant government investment in infrastructure because they did not have to conform to a mantra. Until recently, Eisenhower’s status as a conservative president was never in question as a result of the interstate highway system. Coolidge was not considered a closet communists because he spent tax revenue on massive public works project.
Republican candidates today must follow the “free market good, government bad!” mantra at all times. Yet history clearly demonstrates the inadequacy of this mantra. So the truth is revealed in campaign speeches even though the candidates have absolutely no intention of telling the truth, or have little awareness of what the truth is. In this case, the truth is that the government can and should be an active motivator and investor in the future of our nation. Shrinking government to the point where it is no longer functional is counter-productive.
Addendum:
Rick Santorum, in his speech from Pennsylvania, highlighted his experiences growing up in the working class in that very state. He highlighted his admiration for those, “who worked and scraped and clawed so their children and grandchildren could, yes, have a better quality of life. Yes, maybe even go to college and not have to work in tough manual labor.”
______________________
Note: I use the “Economic Cost” category when quoting my results from measuringworth.com. This, according to the cite, use “the relative share of the project as a percent of the output of the economy. The website offers other comparisons that result in lower numbers. For instance, Historic Opportunity Cost for the interstate highway system comes in at $162 billion in 2010 currency. This is significantly lower than the economic cost quoted in the essay above, but the does not take away from the overall point that the interstate highway system was a huge investment by any measure.
Posted in 2012 Election | Print | 1 Comment »
An Apple a Day Keeps the Tax Man Away
20. March 2012 by Mad Sociologist.
What you are paying for when you buy an i-product
Apple has stated that it will not bring home $60 Billion in foreign profits unless it gets a tax holiday on the money. Of course, they really don’t say what they will do with the money if they bring it home. How much do you want to bet that they’ll put it in their pockets or invest it Wall Street scams rather. After all, if the money isn’t taxed, why should it matter to me or you if they bring it home?
This is a poor form of blackmail. “Let me keep 95% of the money or I’ll keep 100% of the money!” Not exactly a bargin. But blackmail it is, and we as consumers should be disgusted at the arrogance.
This is especially true when one considers the benefits that Apple derives from the American market at the expense of virtual slave labor at Apple off-shore factories. Government trade policies make it cost effective for Apple to produce its products in China and other areas and ship them to American consumers who are willing to overpay for the latest in technology.
Even at that, Apple only pays about 13% effective tax rate on its income. How much do you pay? Also, Apple only pays taxes on about 14% of its profits, claiming that 86% of their income is derived from foreign sales. Actually, Apple off-shores its profits to foreign subsidiaries.
Is Apple really trying to make a political point about how hard it is to be among the mega-rich, taxed so much that instead of having a spare 90 foot mega-yacht at the winter home in Florida they must go through the drudgery of moving the family mega-yacht from the summer home in Maine. Oh, the humanity! Those damn teachers with their pension funds!
Think about that the next time you pay your iPhone bill!
Posted in The Economy | Print | 1 Comment »







