Tuesday, June 18, 2013

The 20 Greatest Quotes From Walter Williams

Townhall.com ^ | June 18, 2013 | John Hawkins

Posted on Tuesday, June 18, 2013 8:03:00 AM by Kaslin

Walter Williams is a veteran, a professor of economics at George Mason University, a syndicated columnist, a fill-in host for Rush Limbaugh and an author of eight books. Williams has one of the finest minds in America as you're about to see as you read these quotations.

20) How many times have we heard “free tuition,” “free health care,” and free you-name-it? If a particular good or service is truly free, we can have as much of it as we want without the sacrifice of other goods or services. Take a “free” library; is it really free? The answer is no. Had the library not been built, that $50 million could have purchased something else. That something else sacrificed is the cost of the library. While users of the library might pay a zero price, zero price and free are not one and the same. So when politicians talk about providing something free, ask them to identify the beneficent Santa Claus or tooth fairy.

19) During the first Reagan administration, I participated in a number of press conferences on either a book or article I’d written or as a panelist in a discussion of White House public policy. On occasion, when the question-and-answer session began, I’d tell the press, “You can treat me like a white person. Ask hard, penetrating questions.” The remark often brought uncomfortable laughter, but I was dead serious. If there is one general characteristic of white liberals, it’s their condescending and demeaning attitude toward blacks.

18) Legality alone is no guide for a moral people. There are many things in this world that have been, or are, legal but clearly immoral. Slavery was legal. Did that make it moral? South Africa’s apartheid, Nazi persecution of Jews, and Stalinist and Maoist purges were all legal, but did that make them moral?

17) Households earning $250,000 and above account for 25 percent, or $1.97 trillion, of the nearly $8 trillion of total household income. If Congress imposed a 100 percent tax, taking all earnings above $250,000 per year, it would bring in about $1.9 trillion. That would keep Washington running for 190 days, but there’s a problem because there are 175 more days left in the year.

The profits of the Fortune 500 richest companies come to $400 billion. That would keep the government running for another 40 days, to mid-July. America has 400 billionaires with a combined net worth of $1.3 trillion. If Congress fleeced them of their assets, stocks, bonds, yachts, airplanes, mansions and jewelry, it would get us to at least late fall.

The fact of the matter is there are not enough rich people to come anywhere close to satisfying Congress’ voracious spending appetite.

16) I don’t blame only politicians. For the most part, they’re only the instruments of a people who have growing contempt for our Constitution. You say, “Hold it, Williams. Now you’ve gone too far!” Check it out. How many votes do you think a James Madison-type senatorial candidate would get if his campaign theme was something like this: “Elect me to office. I will protect and defend the U.S. Constitution. Because there’s no constitutional authority for Congress spending on the objects of benevolence, don’t expect for me to vote for prescription drugs for the elderly, handouts to farmers and food stamps for the poor. Instead, I’ll fight these and other unconstitutional congressional expenditures.” I’ll tell you how many votes he’ll get: It will be Williams’ vote, and that’s it.

15) Three-fifths to two-thirds of the federal budget consists of taking property from one American and giving it to another. Were a private person to do the same thing, we'd call it theft. When government does it, we euphemistically call it income redistribution, but that's exactly what thieves do -- redistribute income.

14) If we look to benefits only, we'll do darn near anything because there's always a benefit. The National Highway Traffic Safety Administration reported that there were 43,443 highway fatalities in 2005. If we had a maximum speed law of 15 mph, the death toll wouldn't be nearly as high, probably not even as high as 500. You say, "Williams, that's a crazy idea!" You're right, but let's not call it crazy; it's more accurate to say: saving some 43,000 lives aren't worth the cost and inconvenience of a 15 mph speed limit.

13) The last election campaign featured great angst over the loss of manufacturing jobs. The number of U.S. manufacturing jobs has fallen, but it has little to do with outsourcing and a lot to do with technological innovation — and it’s a worldwide phenomenon. During the seven years from 1995 through 2002, Drezner notes, U.S. manufacturing employment fell by 11 percent. Globally, manufacturing jobs fell by 11 percent. China lost 15 percent of its manufacturing jobs, and Brazil lost 20 percent. But guess what. Globally, manufacturing output rose by 30 percent during the same period. Technological progress is the primary cause for the decrease in manufacturing jobs.

12) A more insidious effect of minimum wages, as racists everywhere know, is that it lowers discrimination costs. Say a white and a black were equally productive and an employer prefers white workers to black workers. Since he has to pay $9 an hour no matter whom he hires, the cost of discriminating against the black worker is zero. But if it were legal for the black worker to offer a lower price, there’d be a cost to discrimination.

11) Many law professors, and others who hold contempt for our Constitution, preach that the Constitution is a living document. Saying that the Constitution is a living document is the same as saying we don’t have a Constitution. For rules to mean anything, they must be fixed. How many people would like to play me poker and have the rules be “living?” Depending on “evolving standards,” maybe my two pair could beat your flush.

10) The human experience should have taught us that just getting rid of a particular dictatorship is only half the struggle. We must always ask what’s going to replace it.

9) You say, "Williams, you're just old-fashioned and out of touch with modern society." Maybe so, but I think that a society's first line of defense is not the law but customs, traditions and moral values. These behavioral norms -- transmitted by example, word of mouth, religious teachings, rules of etiquette and manners -- represent a body of wisdom distilled over the ages through experience and trial and error. They include important legal thou-shalt-nots -- such as shalt not murder, steal, lie or cheat -- but they also include all those civilities one might call ladylike or gentlemanly behavior. Police officers and courts can never replace these social restraints on personal conduct. At best, laws, police and the criminal justice system are a society's last desperate line of defense.

8) The civil rights struggle is over, and it has been won. At one time, black Americans did not have the same constitutional protections as whites. Now, we do, because the civil rights struggle is over and won is not the same as saying that there are not major problems for a large segment of the black community. What it does say is that they’re not civil rights problems, and to act as if they are, leads to a serious misallocation of resources

7) Maybe your college professor taught that the legacy of colonialism explains Third World poverty. That’s nonsense as well. Canada was a colony. So were Australia, New Zealand and Hong Kong. In fact, the richest country in the world, the United States, was once a colony. By contrast, Ethiopia, Liberia, Tibet, Sikkim, Nepal and Bhutan were never colonies, but they are home to the world’s poorest people.

6) People who denounce the free market and voluntary exchange, and are for control and coercion, believe they have more intelligence and superior wisdom to the masses. What's more, they believe they've been ordained to forcibly impose that wisdom on the rest of us. Of course, they have what they consider good reasons for doing so, but every tyrant that has ever existed has had what he believed were good reasons for restricting the liberty of others.

5) In general, presidents and congressmen have very limited power to do good for the economy and awesome power to do bad. The best good thing that politicians can do for the economy is to stop doing bad. In part, this can be achieved through reducing taxes and economic regulation, and staying out of our lives.

4) Poverty in Egypt, or anywhere else, is not very difficult to explain. There are three basic causes: People are poor because they cannot produce anything highly valued by others. They can produce things highly valued by others but are hampered or prevented from doing so. Or, they volunteer to be poor.

3) What's just has been debated for centuries, but let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree? Well, then, tell me how much of what I earn belongs to you - and why?

2) Suppose I hire you to repair my computer. The job is worth $200 to me and doing the job is worth $200 to you. The transaction will occur because we have a meeting of the mind. Now suppose there’s the imposition of a 30 percent income tax on you. That means you won’t receive $200 but instead $140. You might say the heck with working for me — spending the day with your family is worth more than $140. You might then offer that you’ll do the job if I pay you $285. That way your after-tax earnings will be $200 — what the job was worth to you. There’s a problem. The repair job was worth $200 to me, not $285. So it’s my turn to say the heck with it. This simple example demonstrates that one effect of taxes is that of eliminating transactions, and hence jobs.

1) Here’s Williams’ roadmap out of poverty: Complete high school; get a job, any kind of a job; get married before having children; and be a law-abiding citizen. Among both black and white Americans so described, the poverty rate is in the single digits.

‘Free at Last’: La. State Senator Explains Why He Recently Left the ‘Government Plantation’ & Joined GOP in Powerful Video


Jun. 18, 2013 12:07am Jason Howerton

Louisiana State Sen. Elbert Guillory, formerly a Democrat, recently — and enthusiastically — joined the Republican party.

Weeks after announcing his bold move, Guillory has released a video explaining why he is now with the GOP. The powerful video is titled, “Why I Am a Republican.”

Louisiana State Sen. Elbert Guillory Explains Why He Joined GOP

La. State Sen. Elbert Guillory (YouTube)

In the video, Guillory says it is the Republican Party that actually has the best interests of the black community in mind. He argues Democrats relentlessly push an agenda intended to exert control over blacks, not lift them out of poverty.

“You see, in recent history, the Democrat party has created the illusion that their agenda and their policies are what’s best for black people,” Guillory said. “Somehow it has been forgotten that the Republican party was founded in 1854 as an abolitionist movement, with one simple creed: that slavery is a violation of the rights of man.”

The former Democrat explained that Frederick Douglass called Republicans the “party of freedom and progress.” He also pointed out that former Republican President Abraham Lincoln signed the Emancipation Proclamation and Republicans in Congress wrote the Thirteenth, Fourteenth and Fifteenth Amendments.

“The Democrats, on the other hand, were the party of Jim Crow,” Guillory added. “It was the Democrats who defended the rights of slave owners.”

He went on: “You see, at the heart of liberalism, is the idea that only a great and powerful big Government can be the benefactor of social justice for all Americans. But the left is only concerned with one thing: control. And they disguise this control as charity.”

Watch the video below:

Guillory claimed entitlement programs like welfare and food stamps were never designed to “lift black Americans out of poverty,” but rather to control them.

Further, the welfare programs haven’t even helped blacks at all as they are still “as poor as they’ve ever been,” he argued.

But most importantly, it is the idea that the individual must be free to pursue his or her own happiness, free from Government dependence, and free from Government control. Because to be truly free, is to be reliant on no one, other than the author of our destiny,” Guillory continued, pointing to God. “These are the ideas are at the core of Republican party… My brothers and sisters of the American community, please join me in abandoning the Government plantation and the party of disappointment.”

“So that we may all echo of one Republican leader who famously said, ‘Free at last, free at last. Thank God almighty, we are free at last,” he concluded.

Friday, June 7, 2013

12 Clear Signals That The U.S. Economy Is About To Really Slow Down


Submitted by Tyler Durden on 06/06/2013 21:21 -0400

Submitted by Michael Snyder of The Economic Collapse blog,

A lot of things that have not happened since the last recession are starting to happen again.  As you read the list below, you will notice that the year "2009" comes up again and again.  There is a reason for that.  Many of the same patterns that we witnessed during the last major economic downturn are starting to repeat themselves.

In fact, many of the things that are happening right now have not happened in quite a few years.  For example, manufacturing activity in the U.S. has contracted for the first time in four years.  The inventory to sales ratio is the highest that it has been in four years.  Average hourly compensation just experienced the largest decline that we have seen in four years.  We also just witnessed the largest decline in the number of mortgage applications that we have seen in four years.  After everything that Barack Obama, the U.S. Congress and the Federal Reserve have tried to do, there has been no real economic recovery and now the U.S. economy is suddenly behaving as if it is 2009 all over again.

A whole host of recent surveys indicate that the American people are starting to feel a bit better about the economy, but the underlying economic numbers tell an entirely different story.  The following are 12 clear signals that the U.S. economy is about to really slow down...

#1 The average interest rate on a 30 year mortgage has risen above 4 percent for the first time in more than a year.

#2 The decline in the number of mortgage applications last week was the largest drop that we have seen since June 2009.

#3 Mark Hanson is reporting that "mass layoffs" have occurred at three large mortgage institutions...

This morning I was made aware that three large private mortgage bankers I follow closely for trends in mortgage finance ALL had mass layoffs last Friday and yesterday to the tune of 25% to 50% of their operations staff (intake, processing, underwriting, document drawing, funding, post-closing).

This obviously means that my reports of refi apps being down 65% to 90% in the past 3 weeks are far more accurate than the lagging MBA index, which is likely on its' way to print multi-year lows in the next month.

#4 It was just announced that average hourly compensation in the United States experienced its largest drop since 2009 during the first quarter of 2013.

#5 As I wrote about the other day, the Institute for Supply Management manufacturing index declined to 49.0 in May.  Any reading below 50 indicates contraction.  That was the first contraction in manufacturing activity in the U.S. that we have seen since 2009.

#6 The inventory to sales ratio has hit a level not seen since 2009.  That means that there is a lot of inventory sitting out there that people are not buying.

#7 According to the Commerce Department, the demand for computers dropped by a stunning 9 percent during the month of April.

#8 As I noted in a previous article, corporate revenues are falling at #000000;">Wal-Mart, Proctor and Gamble, Starbucks, AT&T, Safeway, American Express and IBM.

#9 Job growth at small businesses is now at about half the level it was at the beginning of the year.

#10 The stock market is starting to understand that all of these numbers indicate that the U.S. economy is really starting to slow down.  The Dow was down 216.95 points on Wednesday, and it dropped below 15,000 for the first time since May 6th.

#11 The S&P 500 has now fallen more than 4 percent since May 22nd.  Is this the beginning of a market "correction", or is this something much bigger than that?

#12 Japanese stocks are now down about 17 percent from the peak of May 22nd.  Japan has the third largest economy on the planet and it is one of the most important trading partners for the United States.  A major financial crisis in Japan would have very serious implications for the U.S. economy.

If we were going to have an "economic recovery", it should have happened in 2010, 2011 and 2012.  Unfortunately, as a recent Los Angeles Times article detailed, an economic recovery never materialized...

Real GDP growth — the value of goods and services produced after adjusting for inflation — is 15.4% below the 3% growth trend of past recoveries, wrote Edward Leamer, director of the UCLA Anderson Forecast. More robust growth will be necessary to bring this recovery in line with previous ones.

"It's not a recovery," he wrote. "It's not even normal growth. It's bad."

Now we are rapidly approaching another major economic downturn.

But poverty in America has continued to experience explosive growth since the end of the last recession and dependence on the federal government is already at an all-time high.

How much worse can things get?

Sadly, they are going to get much, much worse.

What the U.S. economy is experiencing right now is not just a cyclical downturn. Rather, we are in the midst of a long-term economic decline that is the result of decades of very foolish decisions by our leaders.

It is imperative that we get the American people educated about what is happening.  If people do not understand what is happening, they are not going to get prepared for the hard years that are coming.

If you have a family member or a friend that does not understand the long-term economic collapse that is unfolding all around us, please show them my article entitled "40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To Believe".  It goes a good job of pointing out many of the reasons why we are heading for complete and total economic disaster.

And the point is not to fill people with fear.  Rather, there is a lot of hope in understanding what is happening and in getting prepared.  As we have seen over in Europe, those that get blindsided by economic problems often become totally consumed with despair.  Suicide rates have soared in economically-troubled nations such as Greece, Spain and Italy.

And the same thing is going to happen in the United States too.  In fact, the suicide rate in the United States has already been rising according to the New York Times...

From 1999 to 2010, the suicide rate among Americans ages 35 to 64 rose by nearly 30 percent, to 17.6 deaths per 100,000 people, up from 13.7.

In fact, today more Americans are killed by suicide than by car accidents.

Isn't that crazy?

Unfortunately, this is only just the beginning.  When the system fails, millions of Americans are going to be convinced that their lives are over.  A lot of them are going to do some very stupid things.  We want to try to prevent as much of that as possible.

Thanks to decades of incredibly foolish decisions by our leaders, an economic collapse is inevitable.  This is especially true considering the fact that our leaders in Washington D.C. and elsewhere will not even consider many of the potential solutions which could help start turning our economic problems around.

So since there are no solutions on the horizon, we need to explain to people what is happening and help them to get as prepared as possible.

The years ahead are going to be very hard, but we have a choice as to how we will respond to the challenges in front of us.

We can face those challenges with fear, or we can face them with courage.

Choose wisely.