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Unenlightened Self-Interest

Many Baby Boomers aren't facing reality, survey says

Submitted by bsfootprint on Fri, 11/11/2011 - 23:00
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According to Things Baby Boomers Won't Say, aging Baby Boomers aren't dealing well with reality.

No surprise there, many of them have been avoiding it their whole lives.

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Quote:  “The anti HFT moral panic is a naked power grab by large firms who don’t want to have to compete with the small businessman.” – Scott Locklin

Submitted by bsfootprint on Mon, 08/29/2011 - 16:48
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Scott Locklin opines on recent gnashing and ululating over High Frequency Trading.

Quote: 

The anti HFT moral panic is a naked power grab by large firms who don’t want to have to compete with the small businessman. The fact that it is perpetuated by “journalists” who are supposed to be watch guards protecting the little guy is an obscene perversion. Pardon me if I shed no tears for them as they’re made obsolete by the internets. When they stop acting as mouthpieces for the people who are turning my country into a 21st century version of the Byzantine empire, perhaps I’ll develop some sympathy for them.

Who Said It?: 
Scott Locklin
Quote Source Links: 
http://scottlocklin.wordpress.com/2010/06/30/the-atlantic-tools-of-oligarch/
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Quote:  “After all, lending money is an investment and comes with risk. This is why you earn a return; removing risk makes it not an investment at all but rather a tax.” – Karl Denninger

Submitted by bsfootprint on Sun, 08/28/2011 - 23:20
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Karl Denninger points out why it's arguably immoral for government to bail out lenders.

Quote: 

After all, lending money is an investment and comes with risk. This is why you earn a return; removing risk makes it not an investment at all but rather a tax.

Who Said It?: 
Karl Denninger
Quote Source Links: 
http://market-ticker.org/akcs-www?post=193130
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Investing 101

Submitted by bsfootprint on Wed, 08/17/2011 - 22:28
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SNL's take on modern investing:


Straight Talk - Stock Market senatork

Sources: 
Straight Talk - Stock Market (www.dailymotion.com)
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Income is not wealth

Submitted by bsfootprint on Tue, 08/16/2011 - 16:54
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I'm growing weary of hearing that we should increase taxes on the "wealthy". Hearing wealthy people talking about increasing income tax rates for high income people and businesses.

Wait. Stop.

Income is not wealth.

The income tax is not a tax on wealth.

Income is the means by which one accumulates wealth (or, more accurately, capital.)

Which means: We're talking about raising taxes on the means of accumulating capital.

Taxes are a penalty on the taxed activity. Taxing an activity discourages that activity. You'll get less of it. So you'll get less income-generating activity (and less capital accumulation).

Capital accumulation benefits society. We want capital accumulation. People and businesses usually invest accumulated capital, starting new businesses, expanding existing ones, spurring economic growth.

A family living in Manhattan with an income of $100,000 (and no other capital to draw on) probably would not be considered wealthy (in fact, they'd probably be considered destitute.) The same family living in Arkansas might be considered wealthy. It all depends on lots of factors besides 'income'.

People who are already wealthy (that is, who have accumulated large amounts of capital over the years) will remain wealthy. Yeah, maybe they won't increase their wealth as quickly, but hey, they're already wealthy, right? The proposed tax increases won't reduce their wealth one bit, will they?

People and businesses who aren't yet, but are trying to become wealthy? Well, they'll just have to work a lot harder to get there. If they get there at all.

Which is kind of interesting, I think. Who benefits from increasing impediments to capital accumulation? Those who are already wealthy. Those who are at the top of the economic ladder.

Wealthy people (I'm looking at you, Mr. Buffett) advocating increases in income tax rates on high income earners is like kicking off people below you on the ladder. Or, Mr. Buffett's case, adding rungs and other impediments to the ladder now that he's reached the top and no longer climbing.

And, lest we forget, truly wealthy people like Mr. Buffett can afford to hire an army of clever advisers who will find legal ways to avoid paying some or all of those increased taxes. Those of us who aren't yet wealthy? Well, we can't really afford to hire a comparable army, can we?

Income is not wealth. It's a means of accumulating wealth.

Income is how you become wealthy.

Increasing taxes on high incomes stifles competition, makes it harder for others to become wealthy, via government policy.

And that just sucks.

More Links

Income: A meaningless, misleading, and pernicious concept

Link Love-In

Linked at Doug Ross. Thanks!

Sources: 
Stop coddling the super-rich, Warren Buffett says (www.msnbc.msn.com)
Warren Buffet is a Hypocrite (thesilicongraybeard.blogspot.com)
The Truth about Billionaire Warren Buffett’s Tax Hike Pleas (blog.heritage.org)
Stop coddling Warren Buffett (campaign2012.washingtonexaminer.com)
Warren Buffett’s Fiscal Innumeracy (www.cato-at-liberty.org)
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