Think by Numbers

Think by Numbers

A better world through data

Episodes

  1. 10/04/2016

    Anti-Terrorism Spending 50,000 Times More Than on Any Other Cause of Death

    The US spends more than $500 million per victim on anti-terrorism efforts.  However, cancer research spending is only $10,000 per victim.  Evolutionary psychology may offer an explanation for this irrational threat amplification. But first a message from NATIONAL REPUBLICAN campaign committee: Lightning. Over the last decade it has stricken more Americans than terrorists have. It will stop at nothing to destroy our way of life. Yet some politicians in Washington don’t see lightning as a threat. Barack Hussein Obama doesn’t. In the Senate, he voted to allocate hundreds of billions of dollars to the so-called war on terror, while spending absolutely nothing on a threat which has taken far more American lives. He just doesn’t get it. Barack Obama. Wrong on lightning. Wrong for America. Putting Terrorism in Perspective Roughly 3,000 Americans have lost their lives to terrorist attacks in the last decade. This averages out to a loss of 300 people a year, which is a tragic figure and, as a country, it behooves us to do everything we can to reduce or eliminate the threat of terrorism. But there are still a lot of other ways to wind up being the main course at a worm banquet. The gravest dangers we face include heart disease, cancer, and celebrity breakups. Unfortunately, our country doesn’t have infinite resources available to eliminate every threat. So the task falls to our government to allocate what resources we do have in a manner proportional to the magnitude of each threat. If we, as a society, want to effectively counter the dangers we face, we first have to put them in perspective. How You’re Really Going to Die Ranked by the number of victims, heart disease comes in as the number one threat. It’s responsible for 700,000 deaths a year. This coronary malady keeps food on the tables of funeral directors nationwide. And, like a perpetual motion machine, this very food fills their arteries with cholesterol leading to even more heart attacks. On to number two. Cancer kills 550,000 people a year. But ironically, some futurists see it as a potential key to immortality. It removes the limit on the number of times that a cell can replicate itself. Thus, if properly harnessed, this disease could be used to defy aging by allowing eternal tissue regeneration. This would enable Joan Rivers to continue enchanting Americans with her iconic brand of celebrity commentary for generations to come. Runners up for the best solution to overpopulation include strokes with 160,000 casualties a year, respiratory disease with 120,000 casualties annually, diabetes at 70,000 , pneumonia at 60,000 , Alzheimer’s disease at 50,000 , and vehicular accidents at 40,000. As previously stated, averaged over the last decade which contained the worst terrorist attack in our nation’s history, terrorism still only killed about 300 people a year. Compare this to the 1000 people who are struck by lightning every year. Hopefully, by putting storm clouds on the federal no-fly list we’ll be able to reduce this number in the future. But until then, based on current trends you’re three times more likely to be struck by lightning than to be killed in a terrorist attack.   Risk Annual Deaths Lifetime risk Heart disease 652,486 1 in 5 Cancer 553,888 1 in 7 Stroke 150,074 1 in 24 Hospital infections 99,000 1 in 38 Flu 59,664 1 in 63 Car accidents 44,757 1 in 84 Suicide 31,484 1 in 119 Accidental poisoning 19,456 1 in 193 MRSA (resistant bacteria) 19,000 1 in 197 Falls 17,229 1 in 218 Drowning 3,306 1 in 1,134 Bike accident 762 1 in 4,919 Air/space accident 742 1 in 5,051 Excessive cold 620 1 in 6,045 Sun/heat exposure 273 1 in 13,729 Shark attack* 62 1 in 60,453 Lightning 47 1 in 79, 746 Train crash 24 1 in 156,169 Fireworks 11 1 in 340,733  Sources: Unless otherwise noted, all accidental death information fromNational Safety Council. Disease death information from Centers for Disease Control and Prevention. Lifetime risk is calculated by dividing 2003 population (290,850,005) by the number of deaths, divided by 77.6, the life expectancy of a person born in 2003. *Shark data represents number of attacks worldwide, not deaths.   Screwed Up Spending Priorities Now that we’ve compared the risks, let’s examine how the government chooses to allocate our limited resources to combat these threats. To the least likely means of death I’ve mentioned, terrorism, the federal government devotes about $150 billion annually. On the other hand, to combat the most likely cause of death, heart disease, the government contributes only $2 billion. And just $300 million is devoted to research on the third most likely cause of death, strokes. So looking at it another way, we spend $500 million for every death from terrorism and only $2,000 for every death resulting from strokes. That means we spend 250,000 times more per death on terrorism. I’m sure all of this is very flattering to Osama bin Laden, but this disparity might leave some stroke victims scratching their heads, assuming they’ve retained full motor control of their arms. Why is the government response so disproportionate to the threat? EVOLUTION Evolutionary psychology may be able to explain this phenomenon. The human brain has been around for 200,000 years.   More than 99% of that evolution has been characterized by starvation and general scarcity of resources typified the environment in which humans evolved.  In this situation, violent acquisition of resources from other groups was often a necessary survival technique. Hence, human brains most hyper-vigilant and aggressive toward human threats (i.e. terrorists) were most likely to survive and propagate these characteristics. On the other hand, throughout evolutionary history medical science was almost non-existent.  Hence, there would be no survival value added by a tendency to focus on more likely health-related causes of death. We just weren’t designed for these times. Anxiety Fatigue One possible reason is anxiety fatigue. When an individual is subjected to a stimulus for an extended period of time, such as the aroma of a hospital room, the sound of a fan, or the endless nagging of the mother-in-law, their mind eventually just filters it out. Mortality risks such as heart disease and cancer extend farther back in time than even the existence of our current civilization. Our society now more or less accepts these unfortunate facts of life as another cost of doing business.Thus, they’re filtered out of our collective consciousness to some extent. On the other hand, consider the SARS virus scare a few years ago. Despite the absence of a single American fatality, the newness of this airborne illness allowed it to occupy headlines for weeks. Similarly, the Islamic terrorist menace is also a relatively new phenomenon to the US. Maybe threat fatigue for terrorism just hasn’t set in yet. Economic Consequences The economic consequences of terrorism would, at first thought, seem like a justification for the level of concern. There was a huge financial cost associated with the 9/11 attacks. Total related insurance claim payments are estimated at $32.5 billion. However, there’s been no definitive proof that the attacks lead to a significant decline in GDP. In fact, a GDP which had been falling due to recession in the quarter prior to 9/11 actually started growing again in the quarter following 9/11. It’s conventional wisdom that military spending is good for the economy. However, most macroeconomic models show that, in the long term, military spending diverts resources from productive uses, such as consumption and investment. This ultimately slows economic growth and reduces employment. So if one thinks they’re protecting our economy by taking trillions of dollars away from other productive uses to fight the so-called global war on terror, they should consider upgrading their abycuss to a calculator. Nuclear Bombs Another seemingly more justifiable reason for a magnified response to terrorism is the potential for a nuclear attack that could result in a far greater number of casualties than the typical terrorist attacks have to date. According to many experts on nuclear proliferation, the possibly insurmountable technical challenges of building or acquiring a thermo-nuclear weapon are enormous. Including the requirement that the weapon be portable, makes the likelihood of acquisition dramatically more remote. However, there is a real threat that highly enriched uranium could be aquired from a former Soviet state and used to make a crude bomb. This is a serious risk and needs to be addressed by either securing or downgrading the 1000 tons of yellowcake remaining within Russia and her neighbors. The government currently spends about a billion dollars on this effort annually. Compare this to the two billion we spend in Iraq every week and one might assume we have a bonobo setting our national security priorities in exchange for bananas. Human Psychology Finally, the psychological makeup of our species could also be a contributing factor to this risk amplification. Just look at the plot structure of a work of fiction. The vast majority of conflicts are between a human protagonist and a human antagonist.We seem to maintain an inherent attraction to interpersonal or, on a larger scale, inter-societal conflict. It’s only natural that this affinity translates to our media diet as well. Many studies have shown that the media sets the public policy agenda.So, the point is that interpersonal and societal conflicts like that between Western civilization and Muslim extremists are simply better able to maintain our attention than conflicts between man and complex, abstract medical threats. In addition, sociologists and psychologists have determined that society amplifies the danger of risks imposed upon them, such as terrorism. Conversely, society

    12 min
  2. 04/11/2016

    Financial Sector Costs Us More than Any Other Sector In Economy

    The financial sector receives more of the average paycheck than any other sector of the economy.  Its share of the economy totals $2 trillion dollars. In 1985, the financial sector earned less than 16% of domestic corporate profits.  Today, it’s over 40%. In the 1960s, finance and insurance accounted for only 4% of GDP, whereas in 2007 finance and insurance accounted for 8% of GDP. The purpose of the financial services industry is basically to transfer money from savers to entrepreneurs. It primarily consists of using a computer to shift money from one bank account to another. This service requires virtually no physical labor and very few material resources. Yet, this relatively simple service cost our country more than $2 trillion in 2007. That was more than the country spent on health care, construction, food, utilities or transportation. How can financial paper shuffling to cost us more than the construction of the skyscraper where the paper shuffling will then take place? How does this industry get us to spend such an inordinate amount of money on their services? The free market system automatically optimizes resource allocation to satisfy society’s wants and needs. The current problems in our financial sector can be seen as our economy’s attempt to reduce the excessive size of the financial sector and redirect those resources to more productive purposes. Yet, the government is doing everything in its power to counteract this process. The feds have taken or committed to take over $12 trillion from the other sectors and given them to financial institution to maintain this imbalance. This works out to $42,105 for every man, woman and child in the U.S. The financial sector is at a historic high as share of the overall economy. Graph Source: https://en.wikipedia.org/wiki/File:NYUGDPFinancialShare.jpg Note another year in history when it peaked, 1929.  At that time, many of the country’s resources were shifted to this low-employee, unproductive sector.  It was followed by a decade of unemployment and economic stagnation.  This would suggest that it may be unwise for the government to fuel this bloating if they wish to avoid another lost decade. This begs the question “Why is government taking money from the paychecks of working people and giving it to AIG and Goldman-Sachs?” They claim that their failure will result in the collapse of our entire economic system.  This would, of course, eventually lead to a dystopian Mad Max scenario. However, the presented choice between government bailout and complete financial collapse is a false dichotomy. In reality, if the government allowed these irresponsible actors to fail, they would enter a bankruptcy process and be sold off to more smaller, more responsible companies. Correlation doesn’t necessarily imply causation. However, the reason the government is so set on using tax dollars to prop up these insolvent companies (as opposed to taking the bankruptcy route) might be related to campaign contributions. For instance, AIG executives gave more than $630,000 during the 2008 political cycle even as the company was falling apart. President Obama collected a total of $130,000 from AIG in 2008, while McCain accepted a total of $59,499. Last year AIG and its subsidiaries spent about $9.7 million on federal lobbying, or about $53,000 for every day Congress was in session in 2008. Additionally, Obama’s top presidential campaign contributor was Goldman-Sachs. McCain’s was Merril-Lynch. For all the awful investments AIG made, this political investment has produced a 1730000% rate of return.

  3. 06/25/2013

    Why Think by Numbers?

    Numbers cannot lie. A world without disease, starvation, violence, and suffering is the ultimate destination of humanity. Getting there will require voters to base their decisions on statistical cost-benefit analyses instead of irrational emotions. The power of numbers can make utopia a reality. The Others Your mind has been infiltrated. Your logical and conscious prefrontal cortex is ever thwarted by powerful saboteurs hiding within the dark realm of your subconscious. The usurpers of your decision-making processes are none other than the ignorant reptilian brain stem and emotional limbic system. They torture you with sadness for the slightest defiance. They drug you with narcotic neurochemicals to reward your obedience. This diabolical duo is responsible for all forms of irrational human behavior, such as racism, war, and marriage. Your only defense against these illogical bastards is to base your decisions on cold, hard numbers. For unlike these very flawed and mischievous components of our brains, numbers cannot lie. Three Brains are a Crowd You have a total of three brains: the reptilian brain, the paleo-mammalian brain, and the rational brain. In a sense, a human being is what you might get nine months after a romantic evening between a lizard, a dog, and Mr. Spock. Diagram Source: http://www.ascd.org/publications/books/101269/chapters/A-Walk-Through-the-Brain.aspx Brain 1: The Lizard – The reptilian part of us, the brain stem, deals with the basic survival, instinctive, and reproductive functions.  These functions are otherwise known as the four F’s: fight flight feeding intercourse That’s all that crocodiles really do with their tiny, pea-sized brains.  This republican, I mean reptilian brain is “rigid, obsessive, compulsive, ritualistic and paranoid”. It is prone to repetitive, programmed behaviors and is incapable of learning from mistakes.  The reptile brain’s only saving grace is that it is responsible for all core tasks required for self-preservation. Brain 2: The Dog – The second evolutionary stratum consists of the ancient paleo-mammalian limbic system. The limbic system adds feelings to instincts.  It morally classifies everything as either “good or bad”. The value in this portion of the brain is that it can generates more nuanced, varied and flexible behaviors than can the basic brain stem. Brain 3: Mr. Spock – The characteristically human layer is the neocortex. This is the realm of reason and logic. It is this part of our brains that has given mankind the great gifts of philosophy, mathematics, science, and man’s crowning achievement, the Snuggie. So within our craniums, we have an ongoing battle between the vicious, impulsive lizard, the slobbering dog digging a hole in your couch to china for no reason, and Mr. Spock struggling to determine the fate of our planet. Wouldn’t it be best to leave this job solely to Spock? Triune Brain Painting – Michael Stancato Why Our Brains Don’t Work Rite So, we’ve got this top of the line neocortex which is perfectly capable of rational thought.  Why then, do we behave so irrationally as a species?  The problem is that the rational neocortex is enslaved by the lower brains.  It is not free to examine all available information in it’s quest to attain objective truth.  Instead, it frequently becomes a kind of a slimy neuro-lawyer defending and rationalizing the preconceived notions of our emotional limbic systems. Let’s break down the processing of new infomation: Your sensory organs are exposed to a new piece of information in the form of stimuli. This sensory stimuli is neurally transmitted to the limbic system. The limbic system decides if this information is agreeable (true) or disagreeable (false). The limbic system attaches positive emotions to agreeable information or negative emotions to disagreeable information. That feeling gives that thought a sense of conviction or truth. This information/emotion combination is what we call a belief. At that point, the neocortex is employed to blindly protect and defend this belief. The neocortex puts forth all available evidence which supports this belief. The neocortex figures out ways to discount or filter out any information which contradicts this belief. The limbic system, this primitive brain that can neither read nor write, provides us with the feeling of what is real, true, and important using its own often irrational and illogical criteria. It therefore poses great danger to all of human civilization. Why No One is Reading this Sentence Many of the hostile commenters on my site have expressed their own theories as to why this is.  However, I feel that the reason for this can be explained by a concept known as “The Caveman Principle”.  This principle states that our brains have generally evolved very little since the time of the caveman. The human brain has been around for about 200,000 years.  The Stone Age only ended about 6,000 years ago.  So, ninety-nine percent of our ancestors lived in environments characterized by starvation and a general scarcity of resources. Evolution crawls at a snail’s pace, so we still have these caveman brains optimized for an environment millennia away from our own. So our wants, dreams, personalities, and desires have not changed much in 200,000 years. So, like, what were cavemen into?  Surviving long enough to successfully replicate one’s genes in an unstable environment requires brains with very specific interests.  Hence, the type of brain that survived to reproductive age typically paid a great deal of attention to these questions: Can I eat it? Will it eat me? Can I mate with it? Will it mate with me? Note these topics of interest, which are suspiciously absent from this list: Statistics Economics Formal Cost-Benefit-Analysis An interest in these topics was pretty much worthless to primitive humans struggling to survive in ancient Africa.  This is especially true since math and written language didn’t even exist at the time.  Conventional evolutionary theory states that traits that offer no survival or reproductive advantage will not persist in a species. Hence, these subjects are as fascinating to us as Al Gore recounting a riveting experience of watching paint dry. Evolution has made these subjects brutally boring to most of us. So that, my non-existent reader, is why you are not reading this sentence, and are instead viewing one of the many fine pornographic websites that the prestigious internet has to offer. Let’s Get Ignorant! “It is a capital mistake to theorize before one has data, fool.”  – Mr. T A general disinterest in economics and statistics wouldn’t be a big deal if we lived in a dictatorship.  However, in our political system, government action is to some degree a product of public opinion.  Thomas Jefferson once said, “An informed citizenry is the bulwark of a democracy.”  Based on this quote, I think it’s safe to say that our democracy is currently bulwark-free.  The fact that I don’t know what a bulwark is further proves that we do not have an informed citizenry. The only way to understand the important details of complex and large-scale societal issues is through the use of statistics and economics. Additionally, formal cost-benefit analysis is the only way to make optimal decisions on these complicated issues.  Unfortunately, most of us don’t even know what a cost-benefit analysis is, let alone have a firm grasp of the statistical and economic data needed to perform such analyses. Here’s a list of what the average voter (such as myself) doesn’t know: How much their government spends on: foreign aid Asked to estimate how much of the federal budget goes to foreign aid the median estimate provided by survey respondents is 25%. Asked how much they thought would be an “appropriate” percentage the median response is 10%.  In reality, a mere 1% of the federal budget goes to foreign aid. wars Americans were asked which activities the U.S. government currently spends the most money on: national defense, education, Medicare or interest on the national debt? Just 39% of Americans were able to correctly identify national defense. education Medicare interest on the debt How many troops have been killed in our various and sundry wars just 28% of adults are able to say that approximately 4,000 Americans have died in the Iraq war. How many civilians have been killed in our various and sundry wars Iraqi civilian deaths are estimated at more than 54,000 and could be much higher; some unofficial estimates range into the hundreds of thousands.  The estimate provided by the average survey respondant as 9,890. How much they pay in taxes What the rate of inflation is What the unemployment rate is How much profit corporations make What the Dow Jones Average is 2 years after the terrorist attacks on 9/11, 70% of Americans believed that Saddam Hussein had perpetrated the attacks How wealth is distributed among classes only 2 out of 5 voters can name all three branches of the federal government. only 1 in 5 know that there are 100 federal senators. Without factual data for our neocortices to utilize in doing a cost-benefit comparison of our electoral choices, our stupid brain stems and emotional limbic systems get to choose our candidates. The US government is the most powerful man-made entity in the history of the world. Allowing an uninformed public control of this colossus is like giving a baby a nuclear bomb. My dream is that one day we might upgrade our democracy to the equivalent of a toddler with a nuclear bomb. Keep In the Vote! “If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” — Pee Wee Herman Elections are won and lost not primarily on

    21 min
  4. 01/02/2012

    Meet the Backers: Bankers Flip-Flop to Romney

    It looks like Romney may have inherited Obama’s pocket liners. Take a look at Obama’s 2008 campaign contributors and Romney’s 2012 contributors and a disturbing trend emerges: the financial sector, the very sector that borrowed and is still paying the U.S. back billions in TARP benefits, has scooted over to Romney after having supported Obama four years ago. TARP What is TARP? TARP is the controversial Wall Street bailout program first put into place by President Bush in 2008. The program was made because banks knowingly provided risky subprime mortgages, which borrowers were oftentimes unable to pay back. There was speculation that the entire U.S. financial system was in jeopardy as a result (whether or not this was the case, however, is a matter of debate). In any case, the U.S. government bought into many of the large banks that were struggling at the time, including AIG, Bank of America, Wells Fargo, and Citigroup. Romney has publicly endorsed the TARP program on numerous occasions, and Obama saw it through in his first term. TARP was risky, but in the end most of its participants bought back their assets. The Congressional Budget Office estimates that the program will ultimately cost the U.S. $32 billion.     Campaign Contributions Interestingly, many of the companies that benefited from TARP made donations to the Obama campaign in 2008, despite the dire straits of their finances. Now, these banks have flip-flopped to greener pastures for the 2012 election. See the chart below: Company TARP Bailout $ Obama Campaign 2008 Romney Campaign 2012 Goldman Sachs $10 billion $1,013,091 $994,139 JPMorgan Chase $25 billion $808,799 $792,147 Citigroup $45 billion $736,771 $465,063 Morgan Stanley $45 billion $512,232 $827,255

    21 min
  5. 11/06/2011

    GOP Presidential Candidates’ Budget Plans EXPOSED!!!

    GOP Candidate Ron Paul has produced a detailed budget containing over $1 trillion in first-year reductions. Mitt Romney, Rick Santorum, and Newt Gingrich have only indicated that they would attempt to repeal Obamacare saving an average of $20 billion a year. Why Do the Candidates’ Budget Plans Matter? The only way that a president can noticeably affect the everyday lives of all Americans is by raising or lowing their standard of living.  This is accomplished through their influence over the real tax rate.  The real tax rate encompasses all normal forms of taxation, but it also includes a hidden tax known as inflation. All of the Republican candidates have detailed plans for modifying the tax code.  But saying you’re going to cut taxes without cutting spending correspondingly is sneaky. If you cut taxes, but maintain the same level of spending, then you have to either borrow or print the resulting budget shortfall.  Borrowing the money is worse than paying with taxes immediately, not only because we’ll have to pay it back in a future when the government’s fiscal situation is predicted to be far worse than is today, but we’ll also have to pay a bunch of interest on top of that. The alternative to borrowing is to have the Federal Reserve fire up the printing press.  The FED creates trillions of new dollars out of thin air and give it to the government through the purchase of treasury bonds.  The effect of this is identical to the effect of criminal counterfeiting.  If one doubles the money supply without a corresponding increase in GDP, the long-term result is that everyone’s paycheck can only buy half as much. So using the magical money machine to pay the bills just shifts the tax burden to an inflation tax.  According to the Consumer Price Index, inflation is only about 3.5%. However, the real rate of inflation is currently almost 10%. The inflation tax, while largely ignored, hurts middle-class and low-income Americans the most.  This is because inflation is flat tax which doesn’t tax the poor at a lower rate the way our progressive income tax system does. In fact, it’s somewhat regressive because the loss in value is delayed.  When the new money is initially created, price inflation hasn’t set in yet.  The first people who get to spend the new money are generally giant financial institutions.  By the time it filters down the average Joe, it’s already lost a lot of it’s value. So the only way a president can change the real tax rate is by increasing or decreasing government spending.  Therefor, the only thing about a candidate that’s guaranteed to significantly impact your life is not whether they think gay people should have the right to suffer through the institution of marriage. It’s not whether or not their religion’s doctrine includes magic underwear.  It’s not even their tax plan. It is only the candidates’ positions on spending that is guaranteed to directly affect your everyday life by increasing or decreasing your standard of living. But does a president really have any control over spending? After all, isn’t the level of spending set by the congress?  This is generally true, but the president does have a number of very powerful means of controlling the budget: The Power to Appoint the Chairman of the Federal Reserve – This power enables the president to choose a chairman who would refuse to monetize the debt.  In this case, the government wouldn’t be able to print new money out of thin air. Then congress couldn’t spend any more than tax revenues or borrowing permits. The Power to Veto – The president has the power to veto bills containing spending which he opposes.  Congress would then have to override this veto with a two-thirds majority both houses. The Candidates Compared We know that President Obama stands shoulder to shoulder with our nation’s drunken sailors on spending, but what about the potential Republican nominees?   Mitt Romney (a.k.a. Mormobot 5000) Specific Cuts = $20 Billion Romney wants to repeal Obamacare (which is very similar to Romneycare aside from the fact that Romneycare covered abortions).  As stated before, this would save $20 billion a year. Other than that, this is the maximum level of specificity from his programmers: “Mitt Romney will bring fiscal restraint to Washington by placing a hard cap on federal spending to force our government to live within its means and put an end to deficit spending. Mitt will also curb federal spending by repealing Obamacare, the federal takeover of health care that is scheduled to cost taxpayers one trillion dollars over the next ten years. He will also focus on eliminating wasteful government spending and right-sizing the federal government to save taxpayer dollars. 00010101.” The Romney Record on Spending If we’ve learned anything from the vast disparity between George W. Bush’s fiscal rhetoric and fiscal record, it’s that Romney’s gubernatorial record might be a better indicator of what we could expect from a Romney federal budget. Under Mr. Romney, state spending went from $22.3 billion to $28.1 billion, an annual increase of 6.5 percent.  This is twice as much as the average 2.9% average statewide budget increase. So, if his record is any indication, we shouldn’t expect too much from a Romney presidency in the way of cutting the federal budget.   Image Source (Below) Ron Paul (a.k.a. Dr. No) Specific Cuts = $1 Trillion From his complete detailed and itemized budget: “The Plan to Restore America cuts $1 trillion in spending during the first year of Ron Paul’s presidency, eliminating five cabinet departments (Energy, HUD, Commerce, Interior, and Education). It abolishes the Transportation Security Administration and returns responsibility for security to private property owners.  It also abolishes corporate subsidies, stops foreign aid, ends foreign wars, and returns most other spending to 2006 levels. CUTTING GOVERNMENT WASTE: Makes a 10% reduction in the federal workforce, slashes Congressional pay and perks, and curbs excessive federal travel. To stand with the American People, President Paul will take a salary of $39,336, approximately equal to the median personal income of the American worker.” Image Source (Above) The Paul Record on Spending Paul’s congressional record consists of a long list of votes against federal spending. Voted against the Medicare Prescription Drug Act Voted nine out of nine times against raising his own pay Voted against No Child Left Behind Voted against the subsidy-laden 2002 Farm Bill Voted against the 1998 and 2005 Highway bill, only 1 of 9 to vote against the pork-filled 2005 bill Voted against the Stimulus, TARP, auto bailout, and Cash for Clunkers Voted against the Iraq War Note: I tried to write this objectively, so I seriously put a lot of effort into finding any votes by Ron Paul for significant spending increases.  I hoped to find some to add an appearance of increased credibility to the piece but was  unsuccessful.  If you have any examples, please leave them in comments at the bottom. Let’s look at how Ron Paul’s plan would affect the individual taxpayer.  He wants to cut $4,000,000,000,000 over his 4-year term. Divide this number by 142,449,000 federal income tax filers and that comes out to an average of $28,080.23 in savings for each taxpayer.  Alternatively, the $4 trillion should be divided by 307,006,550, the total US population. This would produce a 4-year savings of $13,029.04 per person.   Newt Gingrich (a.k.a. Sorry, There’s Nothing Funny About Newt Gingrich) Specific Cuts = $20 Billion Like Cain and Romney, all his cuts would come from the repeal of Obamacare. Other than that, he’s not too specific.  From his website: “Balance the budget by growing the economy, controlling spending, implementing money saving reforms, and replacing destructive policies and regulatory agencies with new approaches.” The Gingrich Record on Spending Gingrich’s fiscal record is mixed. During his time in Congress, he had an exemplary voting record on a lot of the top spending proposals: Voted NO on the Chrysler bailout in 1979 Voted YES on the Gramm-Rudman balanced budget bill in 1985 Voted YES on a balanced budget amendment (as part of the “Contract for America” effort that he led) in 1995 Led the effort and voted YES to cut $16.4 billion from the budget in 1995. Voted YES on welfare reform in 1996 Gingrich has also been a vocal opponent of most of the big spending habits pushed by the White House and Congress over the past few years.  He opposed the $787 billion stimulus proposal,  the auto bailout,  and Cash for Clunkers. On the other hand, in 2003, when he urged “every conservative member of Congress” to support the Medicare drug benefit bill.  He called it the “most important reorganization of our nation’s healthcare system since the original Medicare Bill of 1965.”  The drug benefit now costs taxpayers over $60 billion a year and has almost $16 trillion in unfunded liabilities. Notably in 2008, he also backed the $700 billion Wall Street bailout. He’s also attacked those who oppose omnibus spending bills.  These bills roll thousands of programs which may not pass on their own into massive one massive all or nothing bill that is more likely pass. In 1998, he derided a group of House conservatives by calling them the “the perfectionist caucus” for opposing a 4,000-page omnibus spending bill, adding that “those of us who have grown up and matured in this process understand after the last four years that we have to work together on big issues.”   Herman Cain (a.k.a. Pizza Dude) Specific Cuts = $20 Billion Like all the other candidates, Cain wants to repeal Obamacare which would save $20 billion a year.  But other than that, this is about as detailed as it gets: “Nothing should b

    30 min
  6. 09/08/2011

    A More Progressive Tax System Makes People Happier

    Illustration by The New York Times From medicalnewstoday.com: The way some people talk, you’d think that a flat tax system – in which everyone pays at the same rate regardless of income – would make citizens feel better than more progressive taxation, where wealthier people are taxed at higher rates. Indeed, the U.S. has been diminishing progressivity of its tax structure for decades. But a new study comparing 54 nations found that flattening the tax risks flattening social wellbeing as well. “The more progressive the tax policy is, the happier the citizens are,” says University of Virginia psychologist Shigehiro Oishi, summarizing the findings, which will be published in an upcoming issue of Psychological Science, a journal of the Association for Psychological Science. Oishi conducted the study with Ulrich Schimmack of the University of Toronto at Mississauga and Ed Diener, also at University of Illinois and the Gallup Organization. The researchers analyzed the relationship between tax progressivity and personal well-being in 54 nations surveyed by the Gallup Organization in 2007 – a total of 59,634 respondents. Well-being was expressed in people’s assessments of their overall life quality, from “worst” to “best possible life,” on a scale of 1 to 10; and in whether they enjoyed positive daily experiences (such as smiling, being treated with respect, and eating good food) or suffered negative ones, including sadness, worry, and shame. Finally, the analysis looked at the participants’ satisfaction with their nation’s public goods, from schools to clean air. The degree of progressivity was measured by the difference between the highest and lowest tax rates, corrected for such confounding factors as family size, social security taxes paid, and tax benefits received by individuals. The results: On average, residents of the nations with the most progressive taxation evaluated their own lives as closer to “the best possible.” They also reported having more satisfying experiences and fewer discomfiting ones than respondents living in nations with less progressive taxes. That happiness, Oishi says, was “explained by a greater degree of satisfaction with the public goods, such as housing, education, and public transportation.” Higher government spending per se did not yield greater happiness, in spite of the well-being that was associated with satisfaction with state-funded services. In fact, there was a slight negative correlation between government spending and average happiness. “That data is kind of weird,” Oishi says. He guesses that the misalignment might indicate national differences in the efficiency with which those services are delivered or in people’s relative ability to access them. For example, the U.S. spends more on education and health care than other developed countries, “but its international standing in those areas is not so great.” Such puzzling findings may be illuminated in further research. The study, like others Oishi has done looking at connections between economics and personal life, has important social implications. “If the goal of societies is to make citizens happy, tax policy matters,” he says. “Certain policies, like tax progressivity, seem to be more conducive to the happiness of the people.” http://www.medicalnewstoday.com/releases/234017.php

    4 min
  7. 08/13/2011

    Fun Facts About Iraq!

    At least 100,000 civilians have been killed. That’s the equivalent of 35 September 11th attacks, but I don’t like to brag. Another interesting factoid is that the war will end up costing at least $3 trillion.  With that much money, you could end world hunger for 100 years or end American hunger for 100 minutes! Over 4 million Iraqis have lost their homes a result of the war.  That’s equivalent to the population of Maine, Idaho, and New Hampshire combined. Sorry, guys. You cannot all crash on my couch. U.S. SPENDING IN IRAQ It’s all about the benjamins WMD’s. Yeah, that’s it! WMD’s! Spent & Approved War-Spending – About $900 billion of US taxpayers’ funds spent or approved for spending through November 2010. Lost & Unaccounted for in Iraq – $9 billion of US taxpayers’ money and $549.7 milion in spare parts shipped in 2004 to US contractors. Also, per ABC News, 190,000 guns, including 110,000 AK-47 rifles. Missing – $1 billion in tractor trailers, tank recovery vehicles, machine guns, rocket-propelled grenades and other equipment and services provided to the Iraqi security forces. (Per CBS News on Dec 6, 2007.) Mismanaged & Wasted in Iraq – $10 billion, per Feb 2007 Congressional hearings Halliburton Overcharges Classified by the Pentagon as Unreasonable and Unsupported – $1.4 billion Amount paid to KBR, a former Halliburton division, to supply U.S. military in Iraq with food, fuel, housing and other items – $20 billion Portion of the $20 billion paid to KBR that Pentagon auditors deem “questionable or supportable” – $3.2 billion U.S. 2009 Monthly Spending in Iraq – $7.3 billion as of Oct 2009 U.S. 2008 Monthly Spending in Iraq – $12 billion U.S. Spending per Second – $5,000 in 2008 (per Senate Majority Leader Harry Reid on May 5, 2008) Cost of deploying one U.S. soldier for one year in Iraq – $390,000 (Congressional Research Service) Graph Source: http://awesome.good.is/transparency/013/transparency013trilliondollarwar.html TROOPS IN IRAQ Support Our Troops… By sending them to a Middle Eastern hellhole. 47,000 U.S. troops. All other nations have withdrawn their troops. U.S. Troop Casualties – 4,444 US troops; 98% male. 91% non-officers; 82% active duty, 11% National Guard; 74% Caucasian, 9% African-American, 11% Latino. 19% killed by non-hostile causes. 54% of US casualties were under 25 years old. 72% were from the US Army Non-U.S. Troop Casualties – Total 316, with 179 from the UK US Troops Wounded – 32,051, 20% of which are serious brain or spinal injuries. (Total excludes psychological injuries.) US Troops with Serious Mental Health Problems – 30% of US troops develop serious mental health problems within 3 to 4 months of returning home US Military Helicopters Downed in Iraq – 75 total, at least 36 by enemy fire Graph Source: http://www.wallstats.com/blog/us-troop-stength-in-iraq-and-other-data/ IRAQI TROOPS, CIVILIANS & OTHERS IN IRAQ I’m sure you’ve never seen one on TV, but there are actually people who live in Iraq. Private Contractors in Iraq, Working in Support of US Army Troops – More than 180,000 in August 2007, per The Nation/LA Times. Journalists killed – 146, 97 by murder and 49 by acts of war Journalists killed by US Forces – 14 Iraqi Police and Soldiers Killed – 9,889 as of Jan 31, 2011 Iraqi Civilians Killed, Estimated – On October 22, 2010, ABC News reported “a secret U.S. government tally that puts the Iraqi (civilian) death toll over 100,000,” information that was included in more than 400,000 military documents released by Wikileaks.com. A UN issued report dated Sept 20, 2006 stating that Iraqi civilian casualties have been significantly under-reported. Casualties are reported at 50,000 to over 100,000, but may be much higher. Some informed estimates place Iraqi civilian casualties at over 600,000. Graph Source: http://musingsoniraq.blogspot.nl/2011/01/2010-ends-with-slight-drop-in-iraqi.html Iraqi Insurgents Killed, Roughly Estimated – 55,000 Non-Iraqi Contractors and Civilian Workers Killed – 572 Non-Iraqi Kidnapped – 306, including 57 killed, 147 released, 4 escaped, 6 rescued and 89 status unknown. Daily Insurgent Attacks, Feb 2004 – 14 Daily Insurgent Attacks, July 2005 – 70 Daily Insurgent Attacks, May 2007 – 163 Estimated Insurgency Strength, Nov 2003 – 15,000 Estimated Insurgency Strength, Oct 2006 – 20,000 – 30,000 Estimated Insurgency Strength, June 2007 – 70,000 QUALITY OF LIFE INDICATORS Why doesn’t anyone ever focus on the 72% of kids who aren’t malnourished? Iraqis Displaced Inside Iraq, by Iraq War, as of May 2007 – 2,255,000 Iraqi Refugees in Syria & Jordan – 2.1 million to 2.25 million Iraqi Unemployment Rate – 27 to 60%, where curfew not in effect Consumer Price Inflation in 2006 – 50% Iraqi Children Suffering from Chronic Malnutrition – 28% in June 2007 (Per CNN.com, July 30, 2007) Percent of professionals who have left Iraq since 2003 – 40% Iraqi Physicians Before 2003 Invasion – 34,000 Iraqi Physicians Who Have Left Iraq Since 2005 Invasion – 12,000 Iraqi Physicians Murdered Since 2003 Invasion – 2,000 Average Daily Hours Iraqi Homes Have Electricity – 1 to 2 hours, per Ryan Crocker, U.S. Ambassador to Iraq (Per Los Angeles Times, July 27, 2007) Average Daily Hours Iraqi Homes Have Electricity – 10.9 in May 2007 Average Daily Hours Baghdad Homes Have Electricity – 5.6 in May 2007 Pre-War Daily Hours Baghdad Homes Have Electricity – 16 to 24 Number of Iraqi Homes Connected to Sewer Systems – 37% Iraqis without access to adequate water supplies – 70% (Per CNN.com, July 30, 2007) Water Treatment Plants Rehabilitated – 22% Graph Source: http://www.foreignpolicy.com/story/cms.php?story_id=4228 IRAQI PUBLIC OPINION What do they know, anyway? Iraqis “strongly opposed to presence of coalition troops – 82% Iraqis who believe Coalition forces are responsible for any improvement in security – less than 1% Iraqis who feel less secure because of the occupation – 67% Iraqis who do not have confidence in multi-national forces – 72% RESULTS OF POLL Taken in Iraq in August 2005 by the British Ministry of Defense (SOURCE: BROOKINGS INSTITUTE) Graph Source: http://www.good.is Data is presented as of March 31, 2011, except as indicated.

    11 min
  8. 08/05/2011

    Government Pays Doctors $44,000 to Use an iPad

    More upward wealth redistribution from the good folks at the Obama administration! Now starving doctors will finally be able to afford an iPad thanks to your generous tax contribution! With the increased efficiency of electronic record keeping they’ll probably even be able to fire some of their fat cat administrative staff!  (It’s ironic that taxes were being taken out of the paychecks of these ~$25 per hour employees in order to provide subsidies for doctors who are 0.2% highest income earners in the world. This is compounded by the fact that the changeover will enable the doctors to save even more money by laying off administrative staff after the new technology renders them redundant.) The Obama administration strongly desires that all medical records be electronic. There’s an app called Drchrono for the iPad which can make that transition happen. Logically, the government will give up to $44,000 to any doctor willing to use it. The funding will come through the Health Information Technology for Economic and Clinical Health Act (HITECH Act) in which the government allocated $19.2 billion dollars to help move U.S. doctors to electronic medical record systems.  President Obama signed HITECH into law on February 17, 2009 as part of the American Recovery and Reinvestment Act of 2009 (ARRA), an economic stimulus bill. Thank goodness we were able to raise the debt ceiling! Now the government can afford to help these destitute medical professionals climb from the impoverished depths of the 0.2% highest income earners in the world to the 0.1% highest earners. I don’t mean to imply that I oppose the adoption of electronic health records. I wholeheartedly support this goal. However, it’s important that middle class taxpayers know that they are subsidizing the top 0.2% richest Americans.

    2 min
  9. 03/06/2011

    Government Spends More on Corporate Welfare Subsidies than Social Welfare Programs

    Time Magazine, Vol. 152 No. 19 About $59 billion is spent on traditional social welfare programs. $92 billion is spent on corporate subsidies. So, the government spent nearly 50% more on corporate welfare than it did on food stamps and housing assistance in 2006. Before we look at the details, a heartfelt plea from the Save the CEO’s Charitable Trust: There’s so much suffering in the world. It can all get pretty overwhelming sometimes. Consider, for a moment the sorrow in the eyes of a CEO who’s just found out that his end-of-year bonus is only going to be a paltry $2.3 million. “It felt like a slap in the face. Imagine what it would feel like just before Christmas to find out that you’re going to be forced to scrape by on your standard $8.4 million compensation package alone. Imagine what is was like to have to look into my daughter’s face and tell her that I couldn’t afford to both buy her a dollar sign shaped island and hire someone to chew her food from now on, too. To put her in that situation of having to choose… She’s only a child for God’s sake.” It doesn’t have to be this way. Thanks to federal subsidies from taxpayers like you, CEO’s like G. Allen Andreas of Archer Daniels Midland was able to take home almost $14 million in executive compensation last year. But he’s one of the lucky ones. There are still corporations out there that actually have to provide goods and services to their consumers in order to survive. They need your help. For just $93 billion a year the federal government is able to provide a better life for these CEO’s and their families. That’s less than the cost of 240 million cups of coffee a day. Won’t you help a needy corporation today? The Traditional Welfare Queen Definition: social welfare n. Financial aid, such as a subsidy, provided by a government to specific individuals. When one thinks about government welfare, the first thing that comes to mind is the proverbial welfare queen sitting atop her majestic throne of government cheese issuing a royal decree to her clamoring throngs of illegitimate babies that they may shut the hell up while she tries to watch Judge Judy. However, many politically well-connected corporations are also parasitically draining their share of fiscal blood from your paycheck before you ever see it. It’s called corporate welfare. The intent here is to figure out which presents the greater burden to our federal budget, corporate or social welfare programs. There are, of course, positive and negative aspects to this spending.The primary negative aspect is that you have to increase taxes to pay for it. Taxing individuals lowers their standard of living.  It reduces people’s ability to afford necessities like medical care, education, and low mileage off-road vehicles.The common usage definition of social welfare includes welfare checks and food stamps. Welfare checks are supplied through a federal program called Temporary Aid for Needy Families. Combined federal and state TANF spending was about $26 billion in 2006. In 2009, the federal government will spend about $25 billion on rental aid for low-income households and about $8 billion on public housing projects. For some perspective, that’s about 3 percent of the total federal budget. Note: I do not consider Medicaid to be included in the term “welfare” as it is used in common parlance.  Typically, if one states that someone is “on welfare”, they mean that the person is receiving direct financial aid from the government.  If we included Medicaid in our definition of social welfare, we would also have to consider any service that the government pays for to be “welfare”.  For instance, public roadways to individuals’ homes would also be considered “welfare” under that expansive definition. TANF (Temporary Aid to Needy Families) Another negative aspect relates to the fact that social welfare programs reduce the incentive for recipients to become productive members of society. However, in 1996, Congress passed a bill enacting limited welfare reform, replacing the Aid to Families with Dependent Children (AFDC) program with the new Temporary Aid to Needy Families (TANF) program. Now, with the recent changes in healthcare including Obamacare tax implications, some states are enacting strict criteria that a family must meet to be eligible for TANF. One key aspect of this reform required recipients to engage in job searches, on the job training, community service work, or other constructive behaviors as a condition for receiving aid. The bill was signed by a man named Bill Clinton, who is much better known for an act of fellatio which, of course, had far greater societal implications. Regardless, the success of this reform was pretty dramatic. Caseloads were cut nearly in half. Once individuals were required to work or undertake constructive activities as a condition of receiving aid they left welfare rapidly. Another surprising result was a drop in the child poverty rate. Employment of single mothers increased substantially and the child poverty rate fell sharply from 20.8 percent in 1995 to 16.3 percent in 2000. Graph Source: http://census.gov/hhes/www/poverty.html The Corporate Welfare Queen Now, let’s consider the other kind of welfare. Definition: corporate welfare n. Financial aid, such as a subsidy, provided by a government to corporations or other businesses. The Cato Institute estimated that, in 2002, $93 billion were devoted to corporate welfare. This is about 5 percent of the federal budget. What is NOT considered corporate welfare? Government Contracts – To clarify what is and isn’t corporate welfare, a “no-bid” Iraq contract for the prestigious Halliburton, would not be considered corporate welfare because the government technically directly receives some good or service in exchange for this expenditure. Based on the Pentagon’s Defense Contract Audit Agency (DCAA) findings of $1.4 billion of overcharging and fraud, I suppose the primary service they provide could be considered to be repeatedly violating the American taxpayer. Tax Breaks – Tax breaks targeted to benefit specific corporations could also be considered a form of welfare. Tax loopholes force other businesses and individual taxpayers without the same political clout to pick up the slack and sacrifice a greater share of their hard-earned money to decrease the financial burden on these corporations. However, to simplify matters, we’ve only included financial handouts to companies in our working definition of corporate welfare. What IS considered corporate welfare? Subsidies – On the other hand, the $15 billion in subsidies contained in the Energy Policy Act of 2005, to the oil, gas, and coal industries, would be considered corporate welfare because no goods or services are directly returned to the government in exchange for these expenditures. Infographic Source: http://awesome.good.is/transparency/web/1012/subsidize-this/flat.html   Whenever corporate welfare is presented to voters, it always sounds like a pretty reasonable, well-intended idea. Politicians say that they’re stimulating the economy or helping struggling industries or creating jobs or funding important research. But when you steal money from the paychecks of working people, you hurt the economy by reducing their ability to buy the things they want or need. This decrease in demand damages other industries and puts people out of work. Most of the pigs at the government trough are among the biggest companies in America, including: The Big 3 automakers Boeing Archer Daniels Midland Enron Farm Subsidies However, the largest fraction of corporate welfare spending, about 40%, went through the Department of Agriculture, most of it in the form of farm subsidies. (Edwards, Corporate Welfare, 2003) Well, that sounds OK. Someone’s got to help struggling family farms stay afloat, right? But in reality, farm subsidies actually tilt the cotton field in favor of the largest industrial farming operations. When it comes to deciding how to dole out the money, the agricultural subsidy system utilizes a process that is essentially the opposite of that used in the social welfare system’s welfare system. In the corporate welfare system, the more money and assets you have, the more government assistance you get. Conversely, social welfare programs are set up so that the more money and assets you have, the less government assistance you get. The result is that the absolute largest 7% of corporate farming operations receive 45% of all subsidies. (Edwards, Downsizing the Federal Government, 2004) So instead of protecting family farms, these subsidies actually enhance the ability of large industrial operations to shut them out of the market. Graph Source: http://ers.usda.gov/data Wal-Mart.  Always high subsidies.  Always. The same is true in all other industries, too. The government gives tons of favors to the largest corporations, increasing the significant advantage they already have over smaller competing businesses. If, in the court of public opinion, Wal-Mart has been tried and convicted for the murder of main street, mom-and-pop America, then the government could easily be found guilty as a willing accomplice. Wal-Mart receives hundreds of millions of dollars of subsidization by local governments throughout the country. These subsidies take the form of bribes by local politicians trying to convince Wal-Mart to come to their town with the dream of significant job creation. Of course, from that follows a larger tax base. For example, a distribution center in Macclenny, Florida received $9 million in government subsidies in the form of free land, government-funded recruitment and training of employees, targeted tax breaks, and housing subsidies for employees allowing them to be paid significantly lower wages. A study by Good Jobs First found that 244 Wal-Marts

    12 min

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