Canada’s Cannabis Legalization Is Lowering Crime, Increasing Tax Revenue, Private Profit

The gap between legal and illicit cannabis markets in Canada continues widening, according to the latest data from Statistics Canada, the national statistical agency.

Household spending on adult-use cannabis products in legal, regulated channels, grew to $918 million Canadian dollars (US$800 million) in the 4th quarter 2020, which was CA$204 million more than the estimated amount spent on illicit cannabis in the same period.

For the first time, in the previous quarter, spending on legal recreational cannabis in Canada exceeded the value of illegal transactions, with regulated expenditures exceeding estimated illicit sales by CA$59 million.

Canada’s legal, taxed, and regulated, cannabis market benefited significantly from

#ALpolitics could STILL $ave money if they were to #ExpandMedicaid

Alabama, among other states, should have expanded Medicaid when they had the opportunity to do so, and with SIGNIFICANT REWARD! In other words, at the very first. Now, if any state decides to expand Medicaid, there’s little, if any, incentive, except that there will be some savings to the state, and benefit to their citizens, by having access to healthcare.

A sick workforce can’t survive.

The Centers for Disease Control and Prevention (CDC) continually tell America that the sickest, the fattest, the most diabetic, the most smokers, and cancer-ridden, are in the Southeast… which largely voted for Trump, and has been predominately GOP-voting for at least the past 25+/- years. And I write of Alabama in particular.

In a November 2012 brief entitled “An Economic Evaluation of Medicaid Expansion In Alabama under the Affordable Care Act” by Professors Drs. David J.Becker, Ph.D.and Michael A. Morrisey, Ph.D of the University of Alabama at Birmingham School of Public Health, Lister Hill Center for Health Policy, they presented the case for the numerous potential benefits of expanding Medicaid in Alabama, which was not merely an improvement in the overall quality of life for Alabamians, but significant economic benefit to the entire state.

Drs. Morrisey and Becker are Professor and Director, and Assistant Professor, respectively, at the University of Alabama at Birmingham School of Public Health, Lister Hill Center for Health Policy, and have researched and written extensively the subject. The University of Alabama at Birmingham is one of three independent, autonomous universities in the UofA System.

Then-Governor Dr. Robert Bentley, MD, a Republican, was forced to resign in shame in the midst of his second term after pleading guilty to charges of corruption and ethics violations, and refused to expand Medicaid in “Sweet Home.”

The Bureau of Labor Statistics has most recently shown that employment in the Healthcare sector is thriving nationwide. The figures below are from the BLS’ most recent report “THE EMPLOYMENT SITUATION — MARCH 2018,” and is expressed in thousands. The columns in order, are: Not Seasonally Adjusted, March 2017, January, February, March 2018, and Seasonally Adjusted for the same times, respectively. (ESTABLISHMENT DATA Table B-1. Employees on nonfarm payrolls by industry sector and selected industry detail)

Drs. Morrisey and Becker identified that had then-Governor Bentley expanded Medicaid, a Federal/State program that pays healthcare costs for the impoverished, the state could have not merely eked it’s way out of recession, but it would have propelled itself in rocket-like fashion, to a position of economic strength and stamina.

They cited a provision in the Patient Protection and Affordable Care Act (ACA) which provided incentive to states to expand Medicaid by offering a one-time bonus of paying for 100% of all costs in 2014, followed by nominal reductions each year thereafter. And if states chose to expand Medicaid, they would have paid LESS (a smaller percentage) even after all incentives expired. Medicaid is a Federal-State sharing program in which the states bear a certain portion, while the Federal Government picks up the remaining share.

They wrote in part, that “Under the ACA, Alabama would receive a significantly higher Federal Matching Assistance Percentage (FMAP) for the expansion population than the 68.5% it currently receives for the non ‐ expansion population. The ACA provides for a uniform FMAP to all states of 100% in 2014 ‐ 2016, 95% in 2017, 94% in 2018, 93% in 2019 and 90% in all years thereafter.”

Presently, because Alabama has chosen to NOT expand Medicaid under the provisions of the ACA, they are STILL paying MORE for Medicaid than if they would have expanded it… even now, in 2018. That’s because the OLD law, under which the state labors, requires Alabama (and other states that did not expand Medicaid) to pay 31.5%. If Alabama would EXPAND Medicaid even now, in 2018, they would pay only 10%.

Governess Kay Ivey, also a Republican, who as Lt. Gov. assumed office following Bentley’s resignation after pleading guilty to corruption and ethics violation charges, has similarly expressed her reticence to expand Medicaid.

In 2016, Alabama spent $5,461,151,125 for Medicaid.

Noting that their “analysis does not consider potential savings from reduced spending on uncompensated care, mental health care and other services currently provided to the expansion population,” assuming the state expanded Medicaid and would pay “6.2% of program costs through 2020,” Drs. Morrisey and Becker projected three scenarios of a high, moderate, and low “take-up,” meaning enrollment into the program, and wrote that, “we estimate that the state of Alabama would be responsible for $771 million (6.2%) of the estimated $12.5 billion in new Medicaid program costs over the 2014 ‐ 2020 period,” and noted specifically, that “If more previously uninsured or privately insured individuals elect to enroll in Medicaid costs to the state and Federal government would rise. If take ‐ up were lower, the costs to the state and Federal government would fall.”

If Alabama had chosen to expand Medicaid in 2016 – the last year the Federal Government paid 100% of ALL COSTS of expansion – the state would have SAVED $5,461,151,125… the TOTAL cost of Medicaid. If Alabama were to expand Medicaid in 2018 (this year), they would pay only 6.2% of the costs, while the Federal Government would pay 93.8%. Using a high “take-up” scenario for 2018, Drs. Morrisey and Becker projected the state would pay $243,000,000… about 77.5% LESS than what it paid in 2016. A low “take-up” scenario for 2018 would be 46.48% lowered costs to the state.

The state has a peculiar and non-standard practice of having TWO budgets, the Education Trust Fund and General Fund budgets. Medicaid is paid from the General Fund budget, which is the smaller of the two, and receives “Taxes from over 40 sources are deposited into the GF, with the largest sources being the insurance company premium tax, interest on the Alabama Trust Fund and state deposits, oil and gas lease and production tax, cigarette tax, ad valorem tax, and Alabama Alcoholic Beverage Control Board profits,” and pays for and “supports state programs such as child development and protection, criminal justice, conservation efforts, economic development, public health and safety, mental health, Medicaid, legislative activities, and the court system.”

The much larger Education Trust Fund, receives revenue from “Ten tax sources are allocated to the ETF, the largest of which are the individual and corporate income tax, sales tax, utility tax, and use tax.” Revenues from the Education Trust Fund “support, maintenance and development of public education in Alabama, debt service and capital improvements relating to educational facilities, and other functions related to educating the state’s citizens. Programs and agencies supported by the ETF include K-12 education, public library services, performing and fine arts, various scholarship programs, the state’s education regulatory departments, and two- and four-year colleges and universities. Funding from the ETF is also provided to non-state agencies that provide educational services to the people of Alabama, including the arts, disease counseling and education, and youth development.”

Medicaid requires states to cover:
• Pregnant women up to at least 138% of the Federal Poverty Level (FPL) ($16,643 for an individual, $33,948 for a family of four in 2017)

• Preschool-age children up to at least 138% of the FPL ($16,643 for an individual, $33,948 for a family of four in 2017)

• School-age children up to at least 100% of the FPL ($12,060 for an individual, $24,600 for a family of four in 2017)

• Elderly and disabled individuals up to at least 75% of the FPL ($9,045 for an individual, $18,450 for a family of four in 2017)

• Working parents up to at least 28% of the FPL ($3,376 for an individual, $6,888 for a family of four in 2017)

Moreover, however, Alabama could have improved its economy by expanding Medicaid. In that same report, Drs. Morrisey and Becker considered three possible scenarios also based upon a high, moderate, and low “take-up” rate which showed that Alabama could have benefited between $2.331 billion and $33.529 billion in additional value added to the state’s economy from 2014-2020 (Low-to-High, inclusively and respectively).

They concluded that, using the intermediate, or moderate “take-up” scenario, “we project that a coverage expansion would reduce the state’s uninsured population by approximately 232,000 individuals while generating $20 billion in new economic activity and a $935 million increase in net state tax revenues.”

Again, that does NOT include the savings from eliminating uncompensated care.

Bottom line?

It would STILL be exceedingly wise for Alabama to expand Medicaid.

Why I Advocate 100% Marijuana Legalization

Let there be NO MISTAKE: Based upon a preponderance of scientific evidence, logic, reason, and numerous substantiating rationales, I openly advocate for, and am a proponent of the 100% full and total legalization of marijuana (aka cannabis) for adult recreational, and medical use.

And as a triple-degree, BSN-prepared Registered Nurse, Nationally Certified EMT, State Certified Volunteer Firefighter, and First Responder, I am a long-time Licensed Healthcare Professional, and presently possess, and have possessed unblemished active licenses to practice in numerous states, and internationally.

While I have “worn other hats” in Nursing, the bulk of my professional healthcare career has been in Critical Care. Working in Critical Care is the type of stressful job in which one keeps the Grim Reaper at bay by the hour. And I have been fortunate to have worked at some of the nation’s, and world’s premiere, and leading healthcare research institutions. It is research that drives much of such care, to ensure the best possible outcomes for the individuals for whom we care. Thus, keeping abreast of current research findings on many topics within, and without Critical Care, healthcare, and public policy related to healthcare in general, is a special interest and forté of mine.

As well, I am also a United States

Free Enterprise And #Beer

I am a FIRM PROPONENT of ENTREPRENEURSHIP, FREE ENTERPRISE, and FAIR COMPETITION.

For that reason, and others, I have NOT purchased an AB-InBev product in quite some time, not only because of the inferior quality of their products, but because it is a greedy, global, monolithic oligopolic (virtually monopoly) enterprise.

It is NOT an American company, and ceased being an American company when it SOLD OUT to the Belgian brewing company InBev for around $52 billion in 2008. From then, the company was named AB-InBev.

To add insult to injury, the U.S. Department of Justice OK’d a deal in 2016 in which AB-InBev BOUGHT SABMiller’s U.S. business which in turn, would allow Molson Coors to

Citizens United Ruling Violates Equal Protection Clause

Nick Hanauer, a multi-billionaire about whom few have likely heard, authored a highly publicized article not too long ago warning about wealth inequity. Increasingly, the wealthy are realizing that a strategy of cutting taxes upon the wealthy and their corporations is not a recipe for American success, precisely for the reason that it adversely affects economic infrastructure, and jobs, among other damages.

However, one needn’t be wealthy to realize and understand that money, and the unreasonable desire for it known as avarice (an extreme form of greed), and the unwieldy power that accompanies it, are corrupting influences in any nation, and particularly in our United States because of SCOTUS ruling in the 2010 Citizens United v Federal Election Commission decision which

A Better Argument For Alabama #ALpolitics To Legalize, Regulate & Tax Marijuana

Recently, on February 23, 2016, AL.com published an OpEd entitled “Would legalizing cannabis solve Alabama’s budget problems?” written by Reggie C. Pulliam, whom was identified as “a resident of Gulf Shores who has worked on public policy and criminal justice reform in Washington, D.C.”

I found his Op-Ed unconvincing because it’s poorly written.

The Colorado Department of Revenue reported that for December 2015 (State of Colorado Marijuana Taxes, Licenses, and Fees Transfers and Distribution December 2015 Sales Reported in January 2016), Total All Marijuana Taxes, Licenses, and Fees was $13,247,434.

The year-to-date increase was $4,689,293.

Based upon the December figure, on an annualized basis, that’s $158,969,208… which is not exactly chump change.
(See “Alabama Senate Approves Shifting $100 Million Away From Schools” published September 15, 2015.)

Linked here is the Colorado Department of Revenue’s Colorado Marijuana Tax Data.

Figuring into the state cost : benefit analysis & calculations also is a decrease in costs associated with

What Underutilized Renewable Alabama Resource Could Catapult The State Economically?

Soon, the Alabama state legislature will reconvene, and soon enough, they will – once again – be faced with enormous fiscal shortfalls.

And, once again as well, the Republican super-dominated Alabama state legislature will be reticent, reluctant, and recalcitrant to raise taxes… except upon those least capable of paying them. I refer, of course, to the impoverished, which – according to the United States Census Bureau – comprise nearly 20% of Alabama’s population. And with a population estimated at 4,849,377, that’s 901, 984 people, who annually, according to the research,

Examining Right Wing Rhetoric in Memes

How accurate, or true are Right Wing memes?

Regardless of one’s political beliefs, party affiliation, or ideological inclination, it’s always good to consider the truth of statements in memes that – like flotsam and jetsam – are dispersed throughout the Internet… particularly upon Social Media sites such as FaceBook, and Twitter. And unfortunately, in many cases, they are the veritable garbage, the effluent detritus of communication.

So… let’s examine some of the argument in the meme seen here, and see if it still holds water.

Government has necessary services, and provides the same.

Consider road construction as one example.

To create & build roads (which themselves increase opportunity) government must purchase things – raw materials, and manpower, among them.

Now… exactly where is any “government factory” for that, eh?

That’s correct – there is NONE.

EVERYTHING “we the people” by and through our government – at ALL LEVELS, Federal, State, and Local – purchase comes from the Private Sector!

EVERYTHING!

Consider also what may be the greatest example of

In Defense of #Infrastructure Spending

At the federal level, TEApublican types have decried our national deficit, much – if not most – of which came about as a result of placing the price of a decade of warfare on a proverbial credit card. I refer, of course, to the Persian Gulf War, Gulf War II, Operation Desert Shield/Storm and the invasion of Afghanistan, etc., all of which occurred during the previous administration.

Compounding that problem was that corporate and personal income tax rates upon the wealthiest was cut, while simultaneously, the veritable house of cards was crumbling, having been built upon the miry, sinking sands of Wall Street deregulation & greed gone wild.

Nevertheless, as our nation has struggled and clawed its way back to some semblance of fiscal sanity, there have been voices arising whom assert that the federal government’s “bailout” of banks & other large, corporate enterprise has been a gross mistake, and that such a bailout should have never occurred. And, while there will doubtless be volumes written, and debates held about the good and the bad of the ordeal, what’s been done, has been done, and it’s practically all over, but the crying. So the only thing we can do now, is live & learn, and move on.

And yet, respecting one underlying problem which arose corollary to the matter, is the loss of jobs here at home. Again, it was complicated by ‘globalization,’ which – good, bad, or indifferent – is

Offshoring American Enterprise: Good, Bad, or Indifferent?

I may step on a few toes with my next remark, but I can always apologize, and ask forgiveness if it so be the case that my remarks are found offensive.

However, suffice it to say, that our nation’s Congress, has, for at least the past 20 years, or so – and even moreso in the past decade plus – embarked upon a very

Walking on Holy Ground: Colonel Sanders’ Kentucky Fried Chicken Cafe & Museum, Corbin, KY

While in Kentucky, make certain you visit the National Corvette Museum, in Bowling Green.

—

Journeys

In Kentucky, Fried Chicken History

By WILLIAM GRIMES

Published: August 24, 2012

WHEN making his rounds as a traveling salesman for a Chicago printing company, Duncan Hines would occasionally pull off the Dixie Highway in Corbin, Ky., and eat at Sanders Cafe. In the 1939 edition of “Adventures in Good Eating,” his pioneering restaurant guide, he recommended the cafe and its adjoining motor court as “very good place to stop en route to Cumberland Falls and the Great Smokies,” highlighting its “sizzling steaks, fried chicken, country ham, hot biscuits.”

The Sanders Cafe and Museum in Corbin, KY / Jonathan Palmer for The New York Times

The cafe is still there, only now it incorporates a museum and holds down a spot on the National Register of Historic Places, for one huge, unignorable reason. The owner, chef and resident genius of the place was none other than Colonel Harland Sanders, who, on this hallowed ground, cooked the first batch of Kentucky Fried Chicken.

Cumberland Falls does not work the magic it once did, and Corbin itself is not high on anyone’s list of tourist destinations. But the Colonel Harland Sanders Cafe and Museum is a modest must. In addition to capturing a pivotal moment in the mass-marketing of American vernacular food, it evokes a dreamlike time, before the arrival of the Interstate System and its proliferation of fast-food restaurants and chain hotels, when traveling the American highway was a thrilling, high-risk proposition, with marvelous discoveries and ghastly disappointments waiting at every turn.

In its present form, the Sanders Cafe and Museum was born in 1990, the 100th anniversary of Colonel Sanders’s birth. JRN, a Tennessee-based company that operates nearly 200 KFC franchises in the Southeast, was about to open a modern KFC restaurant next to the old cafe. To mark the great birthday, it put out a call for artifacts and memorabilia that would allow it to celebrate the Colonel, his cafe and his fried chicken.

All sorts of stuff

Magic City Brewfest: Renewed excitement in 7th year with passage of Alabama’s Homebrew Law

Wonderful! Wonderful! Wonderful!
—

Moylan’s Kilt Lifter is poured during the 2013 Magic City Brewfest, Friday, May 31, 2013. (Tamika Moore | tmoore@al.com)

Cheers to beers: Alabama raises a glass to home-brew, Brewfest and craft breweries

(Gallery by Tamika Moore | tmoore@al.com)

By Kathryn Tuggle | ktuggle@al.com
Follow on Twitter
on June 02, 2013 at 8:56 AM, updated June 02, 2013 at 9:39 AM

This weekend Birmingham played host to a sold-out Magic City Brewfest at Sloss Furnace, featuring more than 200 different beers from more than 70 craft brew­eries around the nation. Although 2013 marked the seventh annual Brewfest, it was the first since home­brew became legal in Alabama, thanks to legislation passed in May.

Because home-brewers in Alabama can now share recipes and bond over their successes and struggles, Brewfest has a renewed “electricity” in the air, said Gabe Harris, president of Free the Hops, the grassroots non­profit that worked to help pass the home­brew bill.

“It feels great to have home-brew legal in Alabama,” Harris said. “Every craft brewer at Brewfest started out as a home-brewer, and everyone is really excited to be here this year.”

Because craft brewers across the state feel passionately about spreading the home­brew “gospel,” the Home-brew Association set up a tent at Brewfest specifically to edu­cate people about the brewing process.

“We’ve had tons of peo­ple at the tent asking some really intelligent questions,” Harris said.

Spencer Overton, home­brew manager at Birming­ham brewery and bar Hop City, said Birmingham is now on the “cutting edge” of craft beer.

Climate change benefits English wine growers now producing high quality sparkling wine

British winemakers credit climate change for boom in bubbly sales

By Anthony Faiola, Published: April 28, 2013

CUCKMERE VALLEY, England — Blessed with soil similar to France’s Champagne region, vineyards in England nevertheless produced decades of low-grade goop that caused nary a Frenchman to tremble. But a Great British fizz boom is underway, with winemakers crediting climate change for the warmer weather that has seemed to improve their bubbly.

Sparkling wine undergoes an early fermentation process at the Ridgeview Wine Estate in East Sussex, England. Warmer summers are producing wines competitive with some from France.
– GRAHAM BARCLAY/BLOOMBERG NEWS

Increasingly hospitable temperatures have helped transplanted champagne grapes such as chardonnay and pinot noir thrive in the microclimates of southern England, touching off a wine rush by investors banking on climate change. Once considered an oxymoron, fine English sparkling wine is now retailing for champagne prices of $45 to $70 a pop. In recent years, dozens of vineyards have

Tennessee may modernize antiquated beverage alcohol laws

Tennessee has some very strange and peculiar laws regarding the regulation of beverage alcohol, most of which remain rooted in the Prohibition Era, and in in fear.

And, true to form, it would be no wonder that Baptists – the arch-conservative religious political right wing activists of the right wing party – are directly involved in efforts to keep the state mired in the antiquated bad old days of yore.

Tennessee is unique in the regard that state law forbids sale of wine except in state-licensed liquor stores. To clarify, the state of Tennessee has an unusual combination of laws that forbid sales of wine in any other type store save one that sells liquor. Further, sales are prohibited on Sunday. Beer, however, is able to be sold in grocery stores… but only if the ABV (Alcohol By Volume) is under 6%.

Alabama once had a similarly prohibitive content law, along with bottle size restriction – which severely limited the sales of domestic and imported craft/micro brew beers and ales. Alabama no longer has such prohibitive limitations.

And then, if one considers the implications of that law – mandating the sale of wine be exclusively limited to sales in liquor stores – the state actually sanctions the liquor enterprise itself, rather than being a neutral, regulatory body. In Tennessee there are no state-operated liquor stores as there are in Alabama. To have a state-run enterprise is not contradictory to the free market, because the state is a direct competitor in the market, which frequently has the lowest priced products, because taxes are the markup/profit margin for the state. Contrasting that model with the private retailer, the private retailer must make a profit atop the taxes which the state charges (after they purchase from the state at a wholesale cost – the same cost the state sells to the general public), thus increasing the retail price above what the state sells it.

—

Supporters and opponents of a bill that would let grocery and convenience stores sell wine undertook one final push to sway Tennessee lawmakers Monday ahead of a make-or-break vote in the state legislature.

Liquor store owners, grocery store operators, wine shoppers, a sheriff, an addiction specialist and a minister were among the people allowed to testify at a special hearing held a day before the Senate State & Local Government Committee is to vote on the biggest rewrite of Tennessee’s liquor laws in decades. Members guarded

Growing America’s Middle Class and Increasing Profitability

Some time ago, a friend shared an unsolicited comment about “ObamaCare” before all the ruckus over it had reached the SCOTUS. He had observed about a fellow he knew and described as “a snaggle-toothed Tennessee hillbilly,” whom had joined the United States Army. He observed that the fellow had some health needs, among them poor dentition and the need for corrective lenses. Upon his enlistment, he noted that the fellow was given proper healthcare, and all of his needs – food, clothing, housing, and healthcare – was provided by the United States government.

“Now, why did they do that?,” he asked rhetorically.

Answering his own question, he said quite simply, “because they know

December 2012 Jobs Picture

The Employment Situation in December

January 04, 2013
09:30 AM ES

Alan Krueger

While more work remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to heal from the wounds inflicted by the worst downturn since the Great Depression. It is critical that we continue the policies that are building an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007.

With the passage of the American Taxpayer Relief Act earlier this week, more than 98 percent of Americans and 97 percent of small businesses now have certainty that their income taxes will not rise. Additionally, unemployment insurance was extended for two million Americans who are searching for a job, and companies will continue to receive tax credits for the research that they do and continue to have tax incentives to accelerate investment in their businesses. By allowing income tax cuts for the top two percent of earners to expire, this legislation further reduces the deficit by $737 billion over the next decade. It is important that we continue to move toward a sustainable federal budget in a responsible way that balances revenue and spending while protecting critical investments in the economy and essential support for our most vulnerable citizens.

Today’s report from the Bureau of Labor Statistics (BLS) shows that private sector businesses added

Yahoo! CEO Marissa Mayer gives new iPhone 5 to all Yahoo! employees & pays their cell phone bills

In reality, she offered a choice from among 6 smartphones.

She is also also going to pay its employees data and phone bills.

—

Marissa Mayer Just Gave Every Yahoo Employee An iPhone 5

Nicholas Carlson | Sep. 15, 2012, 11:32 PM
New Yahoo CEO Marissa Mayer just sent an email to all of Yahoo’s full time and part time employees in the US, promising them a new Apple, Samsung, Nokia, or HTC smartphone.

Yahoo! CEO Marissa Meyer with Michael Arrington founder and former co-editor of TechCrunch at TechCrunch Disrupt September 14, 2011. Photo by Kevin Krejci

“People are happy,” says a source at the company.

A couple weeks ago, we reported that new Yahoo CEO Marissa Mayer was considering giving every Yahoo employee a new iPhone or Android smartphone.

Mayer has now put that plan into motion through a program Yahoo is calling “Yahoo! Smart Phones, Smart Fun!”

We learned about this plan from an internal memo, which we received from one source and confirmed with another.

Through the program, Yahoo employees will have a choice of phones: iPhone 5, Samsung Galaxy S3, HTC One X, HTC EVO 4G LTE, or Nokia Lumia 920.

Yahoo is also going to

Taxpayers’ $182B TARP bailout of AIG Now Fully Recovered

As the president and others – nonpartisan and partisan alike – have noted, BIG BUSINESS should NOT need a bailout. They should be operated in such a manner as to allow the Free Market to decide how, to what extent, and if they prosper. As part of that process, ironclad and strong regulation to prevent fraud and abuse should be vigorously enforced. And chief executives

The Biggest Economic Challenge of Obama’s Second Term

Investing in economic infrastructure is ALWAYS a sound decision because
1.) Materials and Manpower ALWAYS comes from the private sector (and always will), and;
2.) Economic capacity and economic opportunity expands.

Note also these two remarks:

“Corporations won’t hire more workers just because their tax bill is lower and they spend less on regulations. In case you hadn’t noticed, corporate profits are up. Most companies don’t even know what to do with the profits they’re already making. Not incidentally, much of those profits have come from replacing jobs with computer software or outsourcing them abroad.

“Meanwhile, the wealthy don’t create jobs, and giving them additional tax cuts won’t bring unemployment down. America’s rich are already garnering a bigger share of American income than they have in eighty years. They’re using much of it to speculate in the stock market. All this has done is drive stock prices higher.”

—

Monday, September 10, 2012

The question at the core of America’s upcoming election isn’t merely whose story most voting Americans believe to be true – Mitt Romney’s claim that the economy is in a stall and Obama’s policies haven’t worked, or Barack Obama’s that it’s slowly mending and his approach is working.

If that were all there was to it, last Friday’s report from the Bureau of Labor Statistics showing the economy added only 96,000 jobs in August – below what’s needed merely to keep up with the growth in the number of eligible workers — would seem to bolster Romney’s claim.

But, of course, congressional Republicans have never even given Obama a chance to try his approach. They’ve blocked everything he’s tried to do – including his proposed Jobs Act that would help state and local governments replace many of the teachers, police officers, social workers, and fire fighters they’ve had to let go over the last several years.

The deeper question is what should be done starting in January to boost a recovery that by anyone’s measure is still anemic. In truth, not even the Jobs Act will be enough.

At the Republican convention in Tampa, Florida, Romney produced

More evidence that Government $pending boo$t$ economy

Recollect the brouhaha over Vice President Joe Biden‘s remark Thursday, July 16, 2009 in Alexandria, Virginia?

He was speaking at an AARP-sponsored town hall meeting also attended by AARP CEO A. Barry Rand, Health and Human Services Secretary Kathleen Sebelius and Nancy Ann DeParle, Director of the White House Office of Health Reform.

Vice President Biden said, “Now people, when I say that, look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’ The answer is ‘yes,’ that’s what I’m telling you.”

{ref: http://cnsnews.com/node/51162}

“And folks look, AARP knows – and the people with me here today know, the president knows, and I know – that the status quo is simply not acceptable. Its totally unacceptable. And its completely unsustainable. Even if we wanted to keep it the way we have it now. It can’t do it financially, Were going to go bankrupt as a nation. Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’ The answer is ‘yes,’ I’m telling you.”

Of course, Vice President Biden was speaking in context of the Affordable Care Act – also commonly known as “ObamaCare” – which the Government Accountability Office has shown has already demonstrated significant cost savings and proven to be business-stimulating legislation, and that to eliminate it’s protections would cost the federal government even more in the long-term.

Analogously, it’d be like having a fuel inefficient automobile – one that only got about 5 miles/gallon, or less. If you were to purchase even a used vehicle with twice the fuel economy – 10mpg – you could realize significant overall long-term savings. Simply ceasing driving will not solve any problem, but would rather create more problems.

Similarly, could you imagine having an inefficient Heating/Ventilation & Air Conditioning (HVAC) system? You gotta’ stay cool in the summer and warm in the winter – there’s no way around it. And to lower your average monthly utility bills by even 1/3 would be beneficial.

So, here’s a shocker for armchair philosophers, political pundits, amateur economists, Radical Republicans, TEA Party types and more: Government spending – in part – is a significant driver of our nation’s economy. And, spending on economic infrastructure is ALWAYS a most wise investment.

Why?

Because 1.) Materials and Manpower ALWAYS come from the PRIVATE SECTOR, and;

A: 1.4% Q: What is the annualized spending growth rate under Obama & lowest rate of any president since Reagan?

Who’s the Biggest Spender? Obama or Bush?

By BRUCE BARTLETT, The Fiscal Times June 1, 2012

Lately, there has been some controversy about the growth of spending under Barack Obama. It began on May 22 with a column by Rex Nutting of MarketWatch, which concluded that the rate of growth of federal spending under Obama has actually been trivial compared to the last 4 presidents.

According to Nutting’s calculations, spending has grown only 1.4 percent per year under Obama – one-fifth the rate under Ronald Reagan and George W. Bush. Following is a chart accompanying the article.

There has been a considerable amount of debate about Nutting’s calculations, which fly in the face of Republican dogma. Much involves technical accounting issues, such as how to allocate spending during fiscal year 2009. This is important because fiscal year 2009 began on September 1, 2008 during Bush’s administration, reflecting his priorities. By the time Obama took office on January 20, 2009 the fiscal year was almost half over; he didn’t submit his first budget until February 26, 2009 and the fiscal year 2010 budget is really the first one that reflected his priorities.

Nutting assigned the bulk of fiscal year 2009 spending to Bush, an assumption that other analysts have questioned. Glenn Kessler of the Washington Post found that Nutting overstated his argument in various ways. But the PoliFact site of the Tampa Bay Times concluded that the Nutting column was essentially correct.

Aside from the political implications, the reason this debate is important is because there is a tendency for people to conflate spending, deficits and debt, as well as confusing rates of change with absolute levels.

The difference between