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		<title>Towne for Congress Issues the $20,000 Money Bomb Week Challenge</title>
		<link>http://libertymaven.com/2010/02/08/towne-for-congress-issues-the-20000-money-bomb-week-challenge/8884/</link>
		<comments>http://libertymaven.com/2010/02/08/towne-for-congress-issues-the-20000-money-bomb-week-challenge/8884/#comments</comments>
		<pubDate>Tue, 09 Feb 2010 04:09:48 +0000</pubDate>
		<dc:creator>Jake Towne</dc:creator>
				<category><![CDATA[Election]]></category>
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		<guid isPermaLink="false">http://libertymaven.com/?p=8884</guid>
		<description><![CDATA[“With the Democrats in charge, man exploits man. When the Republicans are in charge, it&#8217;s the opposite.” - seen on a local bumper sticker
The campaign is in serious need of funds to enable us to spread the message, and I have a challenge for supporters. If supporters raise $20,000 or more between Valentine&#8217;s Day (it&#8217;s a [...]]]></description>
			<content:encoded><![CDATA[<p><strong>“With the Democrats in charge, man exploits man. When the Republicans are in charge, it&#8217;s the opposite.” </strong>- seen on a local bumper sticker</p>
<p><img class="alignleft" style="margin: 5px 10px;" src="http://towneforcongress.com/uploads/image/800px-Washington-at-ValleyForge.jpg" alt="" hspace="10" vspace="5" width="336" height="230" align="left" />The campaign is in serious need of funds to enable us to spread the message, and I have a challenge for supporters. <strong>If supporters raise $20,000 or more between Valentine&#8217;s Day</strong> (it&#8217;s a r<strong>EVOL</strong>ution, after all!!) <strong>and February 20, I will donate an additional $5,000 of my own money</strong>. This is a significant amount for me personally, and is not a candidate loan but a donation. The challenge is if campaign supporters and donors are willing to make a significant contribution towards saving our country, I will do so with my wallet as well as with my time. During the week, grassroot supporters are holding two money bombs, and totals from both these will count towards the weekly total. Updates on the totals will be<a href="http://www.dailypaul.com/node/122445">found here</a> on February 15, and in the comment thread below.</p>
<p>Through December 31, 2009, 387 donors <a href="http://fec.gov/DisclosureSearch/mapHSCandDetail.do?election_yr=2010&amp;detailType=cand&amp;cand_id=H0PA15093&amp;category=disH&amp;stateName=PA&amp;congressId=15">have raised $16,400</a> for the campaign, including over $2,000 from myself. As a small independent campaign, we do not have a fundraising coordinator, so all funds raised has come from grassroot supporters in the district and nationwide. The median donation is about $25, <span style="text-decoration: underline;"><em><strong>so no donation is too small</strong></em>.</span></p>
<p><span id="more-8884"></span>$16,400 may not seem like a lot compared to Republocrat totals, but it appears to be the highest total raised by<span style="text-decoration: underline;"><em>any</em></span> independent for the 2010 US House race per the FEC.  The funds have been spent as best as possible given my level of political experience (which was zero back in May 2009 when the campaign began). The results – one of the Republocrat&#8217;s poll reports the campaign <a href="http://towneforcongress.com/economy/independent-jake-towne-skyrockets-to-a-stunningly-high-8-in-the-polls-1">already at 8% in January</a>, and likely 40% is all that is necessary to win. While the only poll that counts will be on Election Day in November, based on supporter feedback, many people will be turning out who have not troubled to vote in years.</p>
<p><img class="alignright" style="margin: 10px;" src="http://towneforcongress.com/uploads/image/003.JPG" alt="" hspace="10" vspace="10" width="336" height="252" align="right" /></p>
<p>Campaign volunteers <a href="http://towneforcongress.com/economy/volunteers-storm-the-15th-district-as-media-exposure-expands-1">have distributed</a> over 20,000 flyers to residences over the district in the past two months, and the number of supporters spreading the word in the district grows daily. <a href="http://towneforcongress.com/economy/towne-for-congress-launches-second-half-page-newspaper-ad-1">Several half-page newspaper ads</a> like the one below were placed in January newspapers and over a hundred people, most of them completely new, have attended Towne Halls to ask questions. Hundreds of <a href="http://towneforcongress.com/ways-to-help/yard-signs">yard signs</a> are up all over the district to promote name recognition. This past week I appeared on the locally well-known Bobby Gunther Walsh radio show, and <a href="http://towneforcongress.com/economy/judge-napolitano-and-jake-towne-interview-on-fox-freedom-watch">appeared on FOX News with Judge Napolitano for the third time</a>.  I have met and interviewed with every person who has asked, in addition to going door-to-door all over the district &#8211; though I have a lot more to cover <img src='http://libertymaven.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
<p>The total of $25,000 was not picked out of thin air. It is how much I believe is necessary to wage an effective campaign against the Republocrats well into this election year. The money will be used for additional advertising, to fund campaign events, door-to-door campaigning, and to assure ballot access when signatures are permitted to be collected starting March 10.</p>
<p><strong><a href="http://www.dailypaul.com/node/122445">JAKE TOWNE “FIRE CAKE” MONEY BOMB</a>, Monday, February 15</strong><strong>th</strong></p>
<p><span style="color: #000000;">During the Pennsylvania winter of 1777-78, Continental soldiers got their nourishment from “fire cakes” &#8211; a tasteless mixture of flour and water – at Valley Forge. February 15, 2010 is the 278</span><span style="color: #000000;">th</span><span style="color: #000000;"> anniversary of George Washington&#8217;s birthday.</span></p>
<p><span style="color: #000000;">The campaign has paid special attention to veterans and to follow the foreign policy of George Washington outlined in <a href="http://www.fff.org/freedom/1001f.asp">his 1796 farewell address</a> that guided our country for most of the following century. See <a href="http://towneforcongress.com/platform-issues/our-veterans">Our Veterans plank</a>,<a href="http://towneforcongress.com/platform-issues/iraq-war">Iraq War plank</a>, and <a href="http://towneforcongress.com/platform-issues/afghanistan-war">Afghanistan War plank</a>. Thanks to legalizeliberty of <a href="http://www.dailypaul.com/node/122445">dailypaul.com</a> for organizing this money bomb!!!</span></p>
<p><strong><a href="http://gigibowman.wordpress.com/2009/12/27/liberty-candidates-revolution-money-bomb-febraury-17th/">LIBERTY CANDIDATES rEVOLution MONEY BOMB</a>, Wednesday, February 17</strong><strong>th</strong></p>
<p><img class="alignright" style="margin: 5px 10px;" src="http://towneforcongress.com/uploads/image/REVOLUTION300DPIPSDcopy(1).jpg" alt="" hspace="10" vspace="5" width="235" height="64" align="right" /><span style="color: #000000;">Towne for Congress is one of four liberty candidates selected by this group to take part in this money bomb. Thanks to <a href="http://gigibowman.wordpress.com/about/">Gigi Bowman</a> for organizing this money bomb!!!</span></p>
<p>Besides spreading the message in a very cost-effective manner, please check out this post “<a href="http://towneforcongress.com/ways-to-help/why-donate">Why Donate?</a>” which also has the latest donor report.</p>
<ul>
<li><strong>I <a href="http://towneforcongress.com/jakes-bio/salary-benefits-term-limits">have promised </a>to only take the median household income and will donate the remainder to local non-profit hospitals, not enlist in the super-lucrative congressional pension plan, nor the elite congressional health care plan.<br />
</strong></li>
<li><strong>I do not and will not take donations from lobbyist PAC groups and corporate PAC groups like my career politician opponents. </strong>I will never sell out the people of my district to DC lobbies and corporate interests.  100% of all contributions to-date have come from individuals.</li>
<li><strong>We have very little overhead expenses</strong>, such as no expensive office to maintain, and there are no staff salaries to pay since the campaign is all volunteers.</li>
<li>As an independent, there is no primary so your donation will go towards a liberty candidate assured to be in the November 2nd, 2010 general election as the signature gathering is not expected to be a challenge.</li>
</ul>
<p>Let me be straightforward. My competitors have already raised well over $1 million, and the party machines are expected to rain cash on this particular district. Success is by no means assured&#8230; <strong><em>but there is</em></strong> <em><strong>no real difference between Republocrat A and Republocrat B</strong></em>.   These career politicians have yet to contribute <em><strong>a single penny</strong></em> to their own campaigns, so that tells you how badly they want to win it.</p>
<p><img class="alignright" style="margin: 5px 10px;" src="http://towneforcongress.com/uploads/image/jake-towne-freedom-watch(3).gif" alt="" hspace="10" vspace="5" width="200" height="125" align="right" />If campaign volunteers and I succeed at spreading the message, the US House of Representatives will have, for the first time in a <span style="text-decoration: underline;">LONG</span> time, an independent voice that has <em><strong>not</strong></em> accepted corporate PAC or lobbyist money, and <span style="text-decoration: underline;"><strong>will speak the truth to power</strong></span>. This is a voice that not only the district, but our entire country sorely needs.</p>
<p>When implemented, a keystone of my campaign, the “<a href="http://towneforcongress.com/mission/our-open-office">Open Office</a>” will shine a little sunlight into the gloomy halls of DC, and maybe, just maybe, spread like wildfire to other districts and disinfect our country of the parasites and lawless rogues who have broken their oaths to the Constitution of the United States.</p>
<p><strong>A brighter dawn is on the way</strong>. All that must be done is to defend individual liberties, ruthlessly wage peace, and promote the prosperity of our society by ending government interventions with the economy.</p>
<p>That Freedom Shall Not Perish.</p>
<p><strong>TOWNE FOR CONGRESS</strong></p>
<p><em>February 8, 2010</em></p>
<p><a href="http://towneforcongress.com/lots-more/article-archives">Article Archive</a></p>
<p><img class="alignleft" src="http://towneforcongress.com/uploads/image/Jake%20Towne%20US%20House%202010%20RF%20Header%283%29.jpg" alt="" width="800" height="114" /></p>
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		<title>America’s Greatest and Strangest Political Secret</title>
		<link>http://libertymaven.com/2010/02/08/americas-greatest-and-strangest-political-secret/8886/</link>
		<comments>http://libertymaven.com/2010/02/08/americas-greatest-and-strangest-political-secret/8886/#comments</comments>
		<pubDate>Tue, 09 Feb 2010 04:06:21 +0000</pubDate>
		<dc:creator>Jake Towne</dc:creator>
				<category><![CDATA[Economics]]></category>
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		<guid isPermaLink="false">http://libertymaven.com/?p=8886</guid>
		<description><![CDATA[Originally published on February 7, 2010 at http://towneforcongress.com/economy/americas-greatest-and-strangest-political-secret-1
The path I have chosen in 2010 is to run as an independent under no political party in 2010.  As a candidate for United States Congress, this was &#8211; and still is &#8211; the best possible route for myself to win the November election and fulfill the campaign&#8217;s mission [...]]]></description>
			<content:encoded><![CDATA[<p><em>Originally published on February 7, 2010 at </em><a href="http://towneforcongress.com/economy/americas-greatest-and-strangest-political-secret-1" target="_blank"><em>http://towneforcongress.com/economy/americas-greatest-and-strangest-political-secret-1</em></a></p>
<p><img class="alignright" style="margin: 10px;" src="http://towneforcongress.com/uploads/image/jake-towne-freedom-watch(2).gif" alt="" hspace="10" vspace="10" width="200" height="125" align="right" />The path I have chosen in 2010 is to run as an independent under no political party in 2010.  As a candidate for United States Congress, this was &#8211; and still is &#8211; the best possible route for myself to win the November election and fulfill <a href="http://towneforcongress.com/mission/mission-statement">the campaign&#8217;s mission statement</a>.   I have a severe dislike for both the Republican and Democrat politicians and party leaders as they are taking my country  - <em><strong>OUR</strong></em> country &#8211; on a path to both moral and economic ruin.  In my particular district, third parties are unfortunately not active and (locally in my district) have largely missed the boat on addressing the economic unrest.</p>
<p>However, as your fellow citizen, I want to share with you all the most effective way to become politically active, and that is to join with one of the two major parties and run for committeeman or committeewoman.  This gives you a vote in selecting local party leaders, and both major parties can be taken over on the local level by a determined minority.</p>
<p>America&#8217;s greatest and strangest political secret is that, in the dead of the winter, the two parties have a brief signature gathering process and then each precinct (usually just the few streets around your home) elects a committeeman/woman.  In Pennsylvania, just 10 signatures are required to be listed on the May 18 primary ballot.  The signature gathering is from February 16 to March 9, hence the timing of this post.  The May primary vote elects the precinct committeemen/women.</p>
<p><span id="more-8886"></span>These party precinct committee members then elect the party leaders, and the party leaders then pretty much decide which candidates to support and endorse and how to control funds on the local level.  (Yes, it&#8217;s a little bit like a democratic mafia.  Stay true to your principles.)</p>
<p>Of course, I am not writing this post for my own political gain.  My campaign was never about my own personal gain, and it&#8217;s certainly not about my monetary gain -  I could be continuing my career as an engineer instead of running a campaign with no pay for 18 months.  Plus, <a href="http://towneforcongress.com/jakes-bio/salary-benefits-term-limits">I have promised</a> that I will only accept the median household income when elected. My campaign is about winning back our liberties, and it is unfortunate I personally cannot take the steps I recommend here.  I hope to see significant inroads locally in both parties in 2010, but I project this will have little effect in 2010, but quite possibly a large effect in 2011 and 2012.</p>
<p>In fact, any elected committeemen and -women are typically banned from endorsing non-party candidates, so it is even possible this may impact some of my supporters.  The Republocrats exhibit typical exclusive clique and collectivist behavior, not really any different from popularity contests in a high school since party leaders do not have <a href="http://towneforcongress.com/mission/principles">principles</a>, or even have principled candidates for that matter.</p>
<p>Definitely also watch Jim Condit Jr.&#8217;s 13-minute video at <a href="http://wagthedog2010.com/">www.WagTheDog2010.com</a> and visit <a href="http://theprecinctproject.wordpress.com/">The Precinct Project</a>.  While both of these sources are targeted at the Republican party, any citizen can select which party to join.  For instance, one of the few redeeming qualities of the Democrat party in recent years (ie. 2006) was to end our expensive nation-building wars and occupations abroad.  The <a href="http://www.youtube.com/watch?v=M9hCN0rbtwY">below 3-minute video</a> can be watched starting at 01:00 until the end.  Don&#8217;t be put off by the captions and music at the beginning.</p>
<p><em>February 7th, 2010</em></p>
<p><a href="http://towneforcongress.com/lots-more/article-archives">Article Archives</a></p>
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		<title>Ron Paul Introduces Free Competition in Currency Act</title>
		<link>http://libertymaven.com/2010/02/08/ron-paul-introduces-free-competition-in-currency-act/8882/</link>
		<comments>http://libertymaven.com/2010/02/08/ron-paul-introduces-free-competition-in-currency-act/8882/#comments</comments>
		<pubDate>Mon, 08 Feb 2010 16:54:37 +0000</pubDate>
		<dc:creator>Mike Miller</dc:creator>
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		<guid isPermaLink="false">http://libertymaven.com/?p=8882</guid>
		<description><![CDATA[A few weeks ago, Ron Paul introduced one of the  Downsize DC Agenda bills. 
Throughout 2009, DC Downsizers ALONE called for  Congressman Paul to re-introduce the three &#8220;Honest Money&#8221; bills using  our &#8220;End the Inflation Tax&#8221; campaign. We had specifically called for the  Congressman not only to resubmit these highly important levers [...]]]></description>
			<content:encoded><![CDATA[<p><span style="font-family: Arial;">A few weeks ago, Ron Paul introduced one of the  Downsize DC Agenda bills. </span></p>
<p><span style="font-family: Arial;">Throughout 2009, DC Downsizers ALONE called for  Congressman Paul to re-introduce the three &#8220;Honest Money&#8221; bills using  our &#8220;End the Inflation Tax&#8221; campaign. We had specifically called for the  Congressman not only to resubmit these highly important levers to  destroy the government&#8217;s inflation tax and to &#8220;End the Fed,&#8221; but we&#8217;d  also encouraged every member of Congress to <a href="https://secure.downsizedc.org/etp/campaigns/85" target="_blank">re-introduce  these three bills in ONE NEW BILL.</a> </span></p>
<p><span style="font-family: Arial;">We applaud Ron Paul for doing exactly that. Here  is the <a href="http://www.house.gov/apps/list/speech/tx14_paul/compcurr.shtml" target="_blank">Statement of Congressman Ron Paul Introducing the Free  Competition in Currency Act HR 4248</a> (edited for publication, with  emphasis points added) . . . </span></p>
<blockquote dir="ltr"><p>Currency, or money, is what allows civilization to flourish. In the  absence of money, barter is the name of the game; if the farmer needs  shoes, he must trade his eggs and milk to the cobbler and hope that the  cobbler needs eggs and milk. Money makes the transaction process far  easier. Rather than having to search for someone with reciprocal wants,  the farmer can exchange his milk and eggs for an agreed-upon medium of  exchange with which he can then purchase shoes.</p>
<p><span style="font-family: Arial;">This medium of exchange should satisfy certain  properties. It should be . . .   <span id="more-8882"></span><br />
</span></p>
<p><span style="font-family: Arial;">* durable, that is to say, it does not wear out  easily<br />
* portable, that is, easily carried<br />
* divisible into units usable for every-day transactions<br />
* recognizable and uniform, so that one unit of money has the same  properties as every other unit<br />
* scarce, in the economic sense, so that the extant supply does not  satisfy the wants of everyone demanding it<br />
* stable, so that the value of its purchasing power does not fluctuate  wildly and,<br />
* reproducible, so that enough units of money can be created to satisfy  the needs of exchange.</span></p>
<p><span style="font-family: Arial;">Over human history, gold and silver have been the  two metals that have most often satisfied these conditions, survived the  market process, and gained the trust of billions of people. Gold and  silver are difficult to counterfeit, a property which ensures they will  always be accepted in commerce. </span></p>
<p><span style="font-family: Arial;">It is precisely for this reason that gold and  silver are anathema to governments. Gold and silver is limited in supply  by nature, cannot be inflated, and thus serves as a check on the growth  of government. Without the ability to inflate the currency, governments  find themselves constrained in their actions, unable to carry on wars  of aggression or to appease their overtaxed citizens with bread and  circuses.</span></p>
<p><span style="font-family: Arial;">At this country&#8217;s founding there was no government  controlled national currency. Foreign coins continued to circulate  within the United States, and did so for several decades. </span></p>
<p><span style="font-family: Arial;">Any power a government arrogates to itself, it is  loathe to give back to the people. Just as we have gone from a  constitutionally-instituted national defense consisting of a limited  army and navy bolstered by militias and letters of marque and reprisal,  we have moved from a system of competing currencies to a  government-instituted banking cartel that monopolizes the issuance of  currency. </span></p>
<p><span style="font-family: Arial;">In order to reintroduce a system of competing  currencies, there are three steps that must be taken to produce a legal  climate favorable to competition.</span></p>
<p><span style="font-family: Arial;"><em>The FIRST step consists of <a href="https://secure.downsizedc.org/etp/campaigns/85" target="_blank">eliminating  legal tender laws.</a></em> </span></p>
<p><span style="font-family: Arial;">Article I Section 10 of the Constitution forbids  the States from making anything but gold and silver a legal tender in  payment of debts. States are not required to enact legal tender laws,  but should they choose to, the only acceptable legal tender is gold and  silver, the two precious metals that individuals throughout history and  across cultures have used as currency. <strong>However, there is nothing  in the Constitution that grants the Congress the power to enact legal  tender laws.</strong> We, the Congress, have the power to coin money,  regulate the value thereof, and of foreign coin, but not to declare a  legal tender. Yet, there is a section of US Code that purports to  establish US coins and currency, including Federal Reserve notes, as  legal tender. </span></p>
<p><span style="font-family: Arial;">Historically, legal tender laws have been used to  force their citizens to accept debased and devalued currency. Gresham&#8217;s  Law describes this phenomenon, which can be summed up in one phrase:  &#8220;bad money drives out good money.&#8221; A king might mint coins with half an  ounce of gold and force merchants, under pain of death, to accept them  as though they contained one ounce of gold. Each ounce of the king&#8217;s  gold could now be minted into two coins instead of one, so the king now  had twice as much &#8220;money&#8221; to spend on building castles and raising  armies. As these legally overvalued coins circulated, the coins  containing the full ounce of gold would be pulled out of circulation and  hoarded. </span></p>
<p><span style="font-family: Arial;">We saw this same phenomenon happen in the  mid-1960s when the US government began to mint subsidiary coinage out of  copper and nickel rather than silver. The copper and nickel coins were  legally overvalued, the silver coins undervalued in relation, and silver  coins vanished from circulation. </span></p>
<p><span style="font-family: Arial;">These actions also give rise to the most  pernicious effects of inflation. Most of the merchants and peasants who  received this devalued currency felt the full effects of inflation, the  rise in prices and the lowered standard of living, before they received  any of the new currency. By the time they received the new currency,  prices had long since doubled, and the new currency they received would  give them no benefit.</span></p>
<p><span style="font-family: Arial;"><strong>In the absence of legal tender laws,  Gresham&#8217;s Law no longer holds If people are free to reject debased  currency, and instead demand sound money, sound money will gradually  return to use in society.</strong> Merchants would have been free to  reject the king&#8217;s coin and accept only coins containing full metal  weight.</span></p>
<p><span style="font-family: Arial;"><em>The SECOND step to reestablishing competing  currencies is to <a href="https://secure.downsizedc.org/etp/campaigns/85" target="_blank">eliminate  laws that prohibit the operation of private mints.</a></em><a> </a></span></p>
<p><span style="font-family: Arial;">One enterprise which attempted to popularize  precious metal coins was the Liberty Dollar. Evidently the government  felt threatened, as Liberty Dollars had all their precious metal coins  seized by the FBI and Secret Service in 2007.</p>
<p><em>The (THIRD) step to ensuring competing currencies is to eli<a href="https://secure.downsizedc.org/etp/campaigns/85" target="_blank">minate  capital gains and sales taxes on gold and silver coins.</a></em><a> </a></span></p>
<p><span style="font-family: Arial;">Under current federal law, coins are considered  collectibles, and are&#8230; assessed at the collectibles rate of 28  percent. </span></p>
<p><span style="font-family: Arial;">Furthermore, these taxes actually tax monetary  debasement. As the dollar weakens, the nominal dollar value of gold  increases. The purchasing power of gold may remain relatively constant,  but as the nominal dollar value increases, the federal government  considers this an increase in wealth, and taxes accordingly. <strong>Thus,  the more the dollar is debased, the more capital gains taxes must be  paid on holdings of gold and other precious metals.</strong></span></p>
<p><span style="font-family: Arial;">Just as pernicious are the sales and use taxes  which are assessed on gold and silver at the state level in many  states.  Imagine having to pay sales tax at the bank every time you  change a $10 bill for a roll of quarters to do laundry. Inflation is a  pernicious tax on the value of money, are only on the order of 4% per  year. Sales taxes in many states can take away 8% or more on every  single transaction in which consumers wish to convert their Federal  Reserve Notes into gold or silver. </span></p>
<p><span style="font-family: Arial;">Competing currencies will allow market  participants to choose a currency that suits their needs, rather than  the needs of the government. The prospect of American citizens turning  away from the dollar towards alternate currencies will provide the  necessary impetus to the US government to regain control of the dollar  and halt its downward spiral. Restoring soundness to the dollar will  remove the government&#8217;s ability and incentive to inflate the currency,  and keep us from launching unconstitutional wars that burden our economy  to excess. </span></p>
<p><span style="font-family: Arial;">With a sound currency, everyone is better off, not  just those who control the monetary system. </span></p></blockquote>
<p><span style="font-family: Arial;">Now, you can join Ron Paul as he urges his  colleagues to consider the redevelopment of a system of competing  currencies and cosponsor the Free Competition in Currency Act. <a href="https://secure.downsizedc.org/etp/campaigns/85" target="_blank">You  can send your personalized messages using DownsizeDC.org&#8217;s proprietary  Educate the Powerful System.</a></span></p>
<p><span style="font-family: Arial;">Then, please be sure to <a href="http://www.downsizedc.org/" target="_blank">Digg this Dispatch at  the DownsizeDC.org blog. Help us get 200 Diggs by midnight (an account  with Digg is required).</a></span></p>
<p><span style="font-family: Arial;">Thank you for being a DC Downsizer, </span></p>
<p><span style="font-family: Arial;">Jim Babka, President<br />
DownsizeDC.org, Inc. </span></p>
<p><span style="color: green;"><strong>D o w n s i z e r &#8211; D i s p a t c h</strong></span></p>
<p>Official email newsletter of <a href="http://www.downsizedc.org/" target="_blank">DownsizeDC.org, Inc.</a> &amp; <a href="http://www.downsizedc.com/" target="_blank">Downsize DC Foundation</a>.</p>
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		<title>Ron Paul’s “Fame and Fortune” simplifies the health care debate</title>
		<link>http://libertymaven.com/2010/02/06/ron-pauls-fame-and-fortune-simplifies-the-health-care-debate/8876/</link>
		<comments>http://libertymaven.com/2010/02/06/ron-pauls-fame-and-fortune-simplifies-the-health-care-debate/8876/#comments</comments>
		<pubDate>Sun, 07 Feb 2010 02:49:49 +0000</pubDate>
		<dc:creator>Marc Gallagher</dc:creator>
				<category><![CDATA[Big Government]]></category>
		<category><![CDATA[Constitution]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Free Market]]></category>
		<category><![CDATA[Health Care]]></category>
		<category><![CDATA[Ron Paul]]></category>
		<category><![CDATA[government spending]]></category>
		<category><![CDATA[inflation]]></category>
		<category><![CDATA[bankrate]]></category>
		<category><![CDATA[bureaucracy]]></category>
		<category><![CDATA[charity]]></category>
		<category><![CDATA[debacle]]></category>
		<category><![CDATA[disaster]]></category>
		<category><![CDATA[fame and fortune]]></category>
		<category><![CDATA[gold standard]]></category>
		<category><![CDATA[health care reform]]></category>
		<category><![CDATA[hospitals]]></category>
		<category><![CDATA[managed care]]></category>
		<category><![CDATA[mandates]]></category>
		<category><![CDATA[matter of fact]]></category>
		<category><![CDATA[medical care]]></category>
		<category><![CDATA[medicine]]></category>
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		<category><![CDATA[sums]]></category>

		<guid isPermaLink="false">http://libertymaven.com/?p=8876</guid>
		<description><![CDATA[Ron Paul participated in a short but quite good interview with Bankrate.com in its &#8220;Fame and Fortune&#8221; series. With one answer Paul sums up the health care debacle.
Bankrate: What do you think of the health care reform package?
Ron Paul: It&#8217;s a disaster! As a matter of fact, it was in the early &#8217;70s when the [...]]]></description>
			<content:encoded><![CDATA[<p>Ron Paul participated in a short but quite good interview with <a title="Bankrate.com" href="http://bankrate.com/" target="_self">Bankrate.com</a> in its &#8220;Fame and Fortune&#8221; series. With one answer Paul sums up the health care debacle.</p>
<blockquote><p><em><strong>Bankrate</strong>: What do you think of the health care reform package?</em></p>
<p><em><strong>Ron Paul</strong>: It&#8217;s a disaster! As a matter of fact, it was in the early &#8217;70s when the Republicans started accelerating intervention and having managed care. That&#8217;s when the tax codes changed and there were mandates. It was the government all of those years that has participated in pushing the cost of medicine up and causing it to become bureaucratic and causing the charity hospitals to go out of business. Managed care has been around (since) about the same time as we lost the gold standard, and it&#8217;s managed care that we should blame.</em></p>
<p><em>The real problem with medical care is it costs too much. Nobody would complain if it didn&#8217;t cost so much. But it costs so much because of inflation plus the bureaucracy we&#8217;ve created.</em></p></blockquote>
<p><a href="http://www.bankrate.com/finance/fame-fortune/fame-fortune-ron-paul-1.aspx">Read the full interview here.</a></p>
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		<title>Colts player reveals the essence of Ben Bernanke</title>
		<link>http://libertymaven.com/2010/02/06/colts-player-reveals-the-essence-of-ben-bernanke/8872/</link>
		<comments>http://libertymaven.com/2010/02/06/colts-player-reveals-the-essence-of-ben-bernanke/8872/#comments</comments>
		<pubDate>Sat, 06 Feb 2010 17:49:06 +0000</pubDate>
		<dc:creator>Marc Gallagher</dc:creator>
				<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Humor]]></category>
		<category><![CDATA[ben bernanke]]></category>
		<category><![CDATA[colts]]></category>
		<category><![CDATA[crook]]></category>
		<category><![CDATA[super bowl]]></category>

		<guid isPermaLink="false">http://libertymaven.com/?p=8872</guid>
		<description><![CDATA[Here is one of the Indianapolis Colts players revealing the essence of Ben Bernanke.

(Thanks to Minnesota Chris)
]]></description>
			<content:encoded><![CDATA[<p>Here is one of the Indianapolis Colts players revealing the essence of Ben Bernanke.</p>
<p><!-- Smart Youtube --><span class="youtube"><object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/zgd9ZbRLFJw&amp;rel=0&amp;color1=234900&amp;color2=4e9e00&amp;border=0&amp;fs=1&amp;hl=en&amp;autoplay=0&amp;showinfo=0&amp;iv_load_policy=3&amp;showsearch=0" /><param name="allowFullScreen" value="true" /><embed wmode="transparent" src="http://www.youtube.com/v/zgd9ZbRLFJw&amp;rel=0&amp;color1=234900&amp;color2=4e9e00&amp;border=0&amp;fs=1&amp;hl=en&amp;autoplay=0&amp;showinfo=0&amp;iv_load_policy=3&amp;showsearch=0" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="355" ></embed><param name="wmode" value="transparent" /></object></span><a href="http://www.youtube.com/watch?v=zgd9ZbRLFJw"><img src="http://img.youtube.com/vi/zgd9ZbRLFJw/default.jpg" width="130" height="97" border=0></a></p>
<p>(Thanks to <a title="Minnesota Chris Blog" href="http://minnesotachris.blogspot.com/" target="_self">Minnesota Chris</a>)</p>
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		<title>More Government Equals Fewer Jobs</title>
		<link>http://libertymaven.com/2010/02/05/more-government-equals-fewer-jobs/8868/</link>
		<comments>http://libertymaven.com/2010/02/05/more-government-equals-fewer-jobs/8868/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 19:37:45 +0000</pubDate>
		<dc:creator>Mike Miller</dc:creator>
				<category><![CDATA[Big Government]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Market Regulation]]></category>
		<category><![CDATA[Peter Schiff]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[government spending]]></category>
		<category><![CDATA[jobs]]></category>
		<category><![CDATA[assembly lines]]></category>
		<category><![CDATA[crash proof]]></category>
		<category><![CDATA[death spiral]]></category>
		<category><![CDATA[dishwashers]]></category>
		<category><![CDATA[economic collapse]]></category>
		<category><![CDATA[factories]]></category>
		<category><![CDATA[federal effort]]></category>
		<category><![CDATA[government regulations]]></category>
		<category><![CDATA[government subsidies]]></category>
		<category><![CDATA[job creation]]></category>
		<category><![CDATA[litigation costs]]></category>
		<category><![CDATA[minimum wage law]]></category>
		<category><![CDATA[paper plates]]></category>
		<category><![CDATA[peter schiff]]></category>
		<category><![CDATA[plastic utensils]]></category>
		<category><![CDATA[robotic assembly]]></category>
		<category><![CDATA[sad truth]]></category>
		<category><![CDATA[stimulus]]></category>
		<category><![CDATA[unexpected decline]]></category>
		<category><![CDATA[wrongful termination lawsuits]]></category>

		<guid isPermaLink="false">http://libertymaven.com/?p=8868</guid>
		<description><![CDATA[by Peter  Schiff, president of Euro Pacific Capital and author of Crash Proof 2.0: How to Profit from the Economic Collapse
With today&#8217;s unexpected decline in December payrolls, the cry for more job-related stimulus will grow even louder. But the sad truth is that  any new stimulus or jobs bills will ultimately swell the ranks of [...]]]></description>
			<content:encoded><![CDATA[<p><em>by Peter  Schiff, president of Euro Pacific Capital and author of <a href="http://www.amazon.com/gp/product/047047453X?ie=UTF8&amp;tag=escapineffblo-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=047047453X" target="_blank">Crash Proof 2.0: How to Profit from the Economic Collapse</a></em></p>
<p>With today&#8217;s unexpected decline in December payrolls, the cry for more job-related stimulus will grow even louder. But the sad truth is that  any new stimulus or jobs bills will ultimately swell the ranks of the unemployed, thereby raising calls for an even bigger federal effort. If  we are not careful, government regulations, subsidies, and spending, all  designed to fight unemployment, could push the labor market into a death spiral.</p>
<p>Regulation acts like a tax on job creation. By subjecting employers to all sorts of extra expenses when they hire  people, regulations increase the cost of employment far beyond the wages employers actually  pay their workers. In fact, some regulations are specifically tied to the number of workers employed. This provides some employers with a strong incentive to stay small and not hire.</p>
<p>The minimum wage law, which is really just a very visible workplace regulation, actually makes it illegal for employers to hire certain individuals and <a href="http://r20.rs6.net/tn.jsp?et=1103008519378&amp;s=774&amp;e=001S8RoV7u0sZeCEFx_L8B1fbD9-yvgWWnen4eF13XKTkWv-TG9vX3I-Mz0juUaKGX--r1esyCCxBFuwZdDJZPOtVUfymNCzUuT1wGR5CyAelRQsDaUXAKKGqvDu_libgGPK-OKGHa5DdiuwILrlwXDRrN9EGh7_wTISbzPJaSRSzFoMvQqcsiWtuUNtsm9CCAF" target="_blank">destroys entire categories of jobs</a>. For instance,  faced with high labor costs, some restaurants will avoid hiring dishwashers by switching to plastic utensils and paper plates. On a larger scale, factories may decide to switch to robotic  assembly lines if human labor gets too expensive.</p>
<p><span id="more-8868"></span>Other types of regulations, such as those that prohibit discrimination,  create incentives for employers not to hire individuals that fall within the  protected class. This is the result of potential litigation costs that may result from wrongful termination lawsuits. In other words, the more expensive government makes it to fire workers, the less  likely they are to hire them in the first place.</p>
<p>Subsidies produce the opposite effect of regulation, but sometimes the  results can be just as harmful. Government subsidies divert resources towards  politically favored activities, resulting in more jobs in areas such as health care and education, but fewer jobs in other sectors such as  manufacturing. The net effect of this transfer is to diminish the productive capacity and efficiency of the economy, which lowers real economic growth and  diminishes employment opportunities.</p>
<p>Although not as visible as regulations and subsidies, government  spending also plays a large role in job destruction. The more money government spends,  the more resources it drains from the private sector. The fiscal 2011 budget proposed by President Obama contains $3.8 trillion in federal  spending. Think of government as a cancer feeding off the private sector. The larger it grows, the more jobs it kills. Unfortunately, most politicians follow  the misguided advice of economist John Maynard Keynes, who advocated  government spending as a means of job creation. In reality, government spending merely results in government jobs replacing more efficient private  sector jobs.</p>
<p>Some economists point to taxes as the primary job killer, and argue that lower taxes will boost employment. While I have sympathy for this view, it misses the larger issue that the burden of government is  not what it taxes but what it spends. The proposed fiscal 2011 federal budget  contains &#8220;only&#8221; 2.4 trillion of taxes. The remaining 1.4 trillion of spending is borrowed (incredibly, for every dollar the government collects in taxes,  it now spends almost $1.60). I would argue that a dollar borrowed kills more  jobs than a dollar taxed. Therefore, cutting taxes and borrowing the shortfall  kills more jobs then it creates. This is true because jobs require capital and government borrowing more directly crowds out private capital investment  than taxes do.</p>
<p>In the end, I fully expect the government to directly provide make-work  jobs to the armies of the unemployed. This will accelerate the pace of private  sector job destruction and make our economy even less productive than it is today. This means that while the  government may be able to provide people with jobs, the wages they pay will provide  little in the way of purchasing power. In the end, we will become a nation of government employees, with plenty of work but little  to show for it.</p>
<table border="0" cellspacing="0" cellpadding="5" width="100%">
<tbody>
<tr>
<td align="left"><span style="font-family: Arial,Helvetica,sans-serif; color: #000000; font-size: x-small;"> <span style="font-size: x-small;">For a more in-depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar,  read Peter Schiff&#8217;s 2008 bestseller &#8220;The Little Book of Bull Moves in Bear Markets&#8221; and his newest release &#8220;Crash  Proof 2.0: How to Profit from the Economic Collapse.&#8221; <a href="http://r20.rs6.net/tn.jsp?et=1103008519378&amp;s=774&amp;e=001S8RoV7u0sZdjk0e6R2RZyq29MjaZPcxNuCxCRthIb2I7s_ifajruWSqkBkTtaOjR7Ml6zxZuYXhJ-8Kk7sp2mhL9nujTaON_yU_W7l5Fi8dAmoyt0VTLucInUOpV4u9C47z2aLf5VQr8VfKNXdOD2GqoZ8r41vd6CPByrAEQsqdeVESWr7WEMi8KDOjsym7Fp3Kt1nmGSsvWx7c21gTU8Mkj8QE3glBN" target="_blank">Click here to learn more</a>.</span></span></p>
<p>More importantly, don&#8217;t let the great deals pass you by. Get an inside view of Peter&#8217;s playbook with his new Special Report, &#8220;Peter Schiff&#8217;s Five Favorite Investment Choices for the Next Five Years.&#8221; <a href="http://r20.rs6.net/tn.jsp?et=1103008519378&amp;s=774&amp;e=001S8RoV7u0sZcpyWHeGVSGxEIbtajTL4D7_XeS1cq_SD2yVwexaI4HD5LhqOwztZj288tOUXzUqqdxbquhdvdkNDjLEzJ34MUzB7ic0izJ7TlSwFhUhjYoDiOTtcAQE8xKuGtyocUVJwN_Vwn_MFHp2_A5LJVOAlhbuRvuqs-WXeJTnTP6rpAJtWtDsoICKs2tJLAtL4v65RXfRYKi2OFcp3rQKbwvFXkuJ-718ugDfu9gMqObtYQZ8UT-bVMJ_A0-quf3SuYMHbNfDKj_LZCyFBzjd-B4L0y0" target="_blank">Click here to download the report for free</a>. You can  find more free services for global investors, and learn about the Euro  Pacific advantage, at <a href="http://r20.rs6.net/tn.jsp?et=1103008519378&amp;s=774&amp;e=001S8RoV7u0sZdHgbCw531xgA0XJn3tTkwfrcEFKQeeBZRgGhZm9VULWZ0V8P1o0TXwP7MCv0phMBPk9hwY4aP3cg4vBXM6OpTaQUZCpqt-qEL8HyFvjqkzXmbisg61ElNqys50RueYJcKPG1J0G7JdM7G6Y3252GjVFrS80js-twYHPGtkqu9Qm0BKRxTnSVVv1IivLzWRuCTgTrfnIkv43Q==" target="_blank">www.europac.net</a>.</td>
</tr>
</tbody>
</table>
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		<title>The Federal Reserve vs. Health Care Reform</title>
		<link>http://libertymaven.com/2010/02/05/the-federal-reserve-vs-health-care-reform/8680/</link>
		<comments>http://libertymaven.com/2010/02/05/the-federal-reserve-vs-health-care-reform/8680/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 05:12:41 +0000</pubDate>
		<dc:creator>Marc Gallagher</dc:creator>
				<category><![CDATA[Big Government]]></category>
		<category><![CDATA[Commentary]]></category>
		<category><![CDATA[Constitution]]></category>
		<category><![CDATA[Federal Reserve]]></category>
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		<category><![CDATA[Health Care]]></category>
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		<category><![CDATA[Maven Commentary]]></category>
		<category><![CDATA[inflation]]></category>
		<category><![CDATA[100 years]]></category>
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		<category><![CDATA[bad joke]]></category>
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		<category><![CDATA[government health care]]></category>
		<category><![CDATA[health care reform]]></category>
		<category><![CDATA[monumental failure]]></category>
		<category><![CDATA[reform proposals]]></category>
		<category><![CDATA[rhetorical question]]></category>
		<category><![CDATA[role of government]]></category>
		<category><![CDATA[Ron Paul]]></category>

		<guid isPermaLink="false">http://libertymaven.com/?p=8680</guid>
		<description><![CDATA[What do the Federal Reserve and the Democrats&#8217; health care reform proposals have in common? No, it&#8217;s not the start of a bad joke nor a rhetorical question. It&#8217;s all about the role of government.
Some question whether or not the Federal Reserve is a government entity. I don&#8217;t. It has government written all over it. [...]]]></description>
			<content:encoded><![CDATA[<p>What do the Federal Reserve and the Democrats&#8217; health care reform proposals have in common? No, it&#8217;s not the start of a bad joke nor a rhetorical question. It&#8217;s all about the role of government.</p>
<p>Some question whether or not the Federal Reserve is a government entity. I don&#8217;t. It has government written all over it. It was created by the government and, like most government creations, it is a failure.</p>
<p>Congress created the Federal Reserve primarily to stabilize the dollar and the U.S. economy. Prior to the creation of the Fed the dollar was relatively stable. Following the creation of the Federal Reserve the dollar has declined nearly every year, but especially since the early 1970&#8217;s. By this rather essential measure, the Federal Reserve is a colossal bust.</p>
<p><span id="more-8680"></span></p>
<p>Over 100 Democrats have co-sponsored Ron Paul&#8217;s bill to audit the Federal Reserve. They agree with Paul that the Fed is a monumental failure. Yet many of these same Democrats somehow believe that the government can effectively provide health care for a majority of Americans.</p>
<p>Let&#8217;s make an assumption (a seemingly unlikely one these days) that the Democrats&#8217; version of health care reform passes in the next few months or few years. I wonder if 100 years from now there will be a giant bipartisan effort to audit and/or end government health care after it proves to be an expensive failure. I hope we never have to find out.</p>
<p>Let today&#8217;s failed Federal Reserve be a warning about what the future likely holds for health care reform, should it become law. Both are perfect examples of expensive and unconstitutional efforts that purport to do good, but in the final analysis, do the most harm to those they aim to help.</p>
<p>The Federal Reserve makes the poor poorer through the &#8220;inflation tax&#8221;. As the Fed prints more money each dollar becomes less valuable and will by fewer goods. Poor Americans are hurt the most by this because they don&#8217;t own as many dollars as the rich.</p>
<p>The proposed government health care reforms hurt the people required to use it the most. There will be rationing and long waiting lists. Additionally, innovative procedures will be disallowed due to their risk and expense. We can make this claim based on America&#8217;s long history of failed government programs and the high demand that the new government health care system would generate.</p>
<p>Haven&#8217;t we learned by now that when it comes to government-granted wishes&#8230; you&#8217;d better be careful what you wish for?</p>
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		<title>Rewards Abroad</title>
		<link>http://libertymaven.com/2010/02/04/rewards-abroad/8854/</link>
		<comments>http://libertymaven.com/2010/02/04/rewards-abroad/8854/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 19:19:49 +0000</pubDate>
		<dc:creator>Mike Miller</dc:creator>
				<category><![CDATA[Big Government]]></category>
		<category><![CDATA[Communism]]></category>
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		<guid isPermaLink="false">http://libertymaven.com/?p=8854</guid>
		<description><![CDATA[by John  Browne &#8211; Senior Market Strategist, Euro Pacific Capital
President Obama&#8217;s State of the Union message only serves to reinforce my forecast  that investors will continue to find better returns in markets outside  America and in currencies other than the U.S. dollar. Indeed, the reward gap may  well increase.
Nothing in the [...]]]></description>
			<content:encoded><![CDATA[<p><em><img class="alignright" style="margin-left: 15px; margin-bottom: 10px;" title="John Browne" src="http://libertymaven.com/images/JohnBrowne.png" alt="" width="150" height="150" />by John  Browne &#8211; Senior Market Strategist, Euro Pacific Capital</em></p>
<p>President Obama&#8217;s State of the Union message only serves to reinforce my forecast  that investors will continue to find better returns in markets outside  America and in currencies other than the U.S. dollar. Indeed, the reward gap may  well increase.</p>
<p>Nothing in the President&#8217;s speech indicated willingness to do the hard work of  cutting spending. Rather, he reiterated his commitment to a costly new  healthcare entitlement and more spending on make-work programs. Only days later,  his budget acknowledged that, even before factoring in the cost of his  proposals, the federal government is unlikely to be in surplus for the foreseeable  future. In response, Moody&#8217;s has issued a warning that the United States&#8217; triple-A  credit rating is not unassailable. In short, the trend set some ten years ago  will continue.</p>
<p><span id="more-8854"></span>Since 1999, those who invested in U.S. stocks, as measured by the S&amp;P  Index, have lost about half of their wealth, in real terms.<span style="font-size: xx-small;">[i]</span> On the other hand, those who invested abroad, measured by the Morgan  Stanley Emerging Market Index,<span style="font-size: xx-small;">[ii] [iii]</span> have doubled their investments in real terms. This is because capitalism  is flourishing abroad, while being curtailed progressively in so-called advanced  economies, where the projected aggregate growth rate for 2010 is now only some 2.5  percent. Somewhat optimistically, this assumes no double dip recession. <span style="font-size: xx-small;">[iv]</span></p>
<p>Most of the emerging economies are far less leveraged than those of the  advanced countries and are relatively well insulated from the massive dollar deleveraging  that began in 2007. Crucially, their government spending is geared largely to infrastructure and far less to expensive government bureaucracy and  wealth-depleting entitlements. Most importantly, even formerly communist governments,  like that of China, have embraced free-market capitalism, while many in the  advanced governments are flirting with socialism.</p>
<p>As the most leveraged of the major economies, America in particular faces  great problems with regard to regenerating consumer demand. Looking at the  future of U.S. stock markets, the following five bearish observations stand out.</p>
<p>First, it appears that the ruling Democratic Party is out of touch with the  realities of economics. Paying little apparent heed to their sensational defeat in Massachusetts, President Obama and his Democrat Congress are making no realistic attempt to rein in, let alone cut, runaway government  spending. Yet, the current path leads to spiking debt costs, huge tax increases, and  unprecedented U.S. dollar debasement. In addition, because many Congressional  Democrats were elected by disaffected conservatives during the Bush years, the party  cannot agree to terms on reform legislation. This leaves businesses fraught  with uncertainty as to how they will be impacted.</p>
<p>Because of the focus on new spending, we have only seen empty gestures with  regard to tax-cutting. This is the ultimate form of &#8220;stimulus,&#8221; but one that must  be earned through reduced spending. While President Obama has talked tax  cuts, his actions indicate only a redistributionist impulse to set up federal  programs for which business and the productive classes must pay. Whether or not  that satisfies his ideological goals, it is a recipe for economic disaster.</p>
<p>Second, while the Fed has signaled that it will hold interest rates down for the foreseeable future, it is likely that in the medium and long end of the  yield curve the market will soon force rates higher. This will lead U.S. bond  and equity markets to better reflect their real values, and end the nominal recovery we have seen thus far.</p>
<p>Third, despite increased government hiring in wealth-consuming jobs, total  employment, and especially private, wealth-creating employment, continues to fall. <span style="font-size: xx-small;">[v]</span> Those jobs are moving abroad. Last year, the U.S. witnessed the steepest  drop in demand for H1B visas in recent history. <span style="font-size: xx-small;">[vi]</span> This indicates that America is losing its appeal as the place for the  world&#8217;s enterprising young minds to strike it rich.</p>
<p>Fourth, the Dow has risen at a historically fast rate over the past nine months,  while volume has thinned. <span style="font-size: xx-small;">[vii]</span> In other words, the rally is being pushed by speculative traders, not  long-term investors. It is, therefore, highly vulnerable to collapse.</p>
<p>Finally, political uncertainty, rising unemployment, and an outlook for increased  taxes are destroying any looming consumer confidence. Fourth-quarter GDP grew an annualized 5.7 percent on inventory restocking, but no one is in the  mood to spend. <span style="font-size: xx-small;">[viii]</span> Consequently, those stockpiles will drag on GDP growth for several  quarters.</p>
<p>With this somber picture at home, it was not naïve to have hoped the  President would shift to a common sense agenda in the State of the Union. Unfortunately,  this Administration may not have the fortitude to implement an austerity  program. One way or another, the U.S. is going to have to face the economic reality;  the longer we wait, the bigger head-start we give to our competitors in the developing world.</p>
<div><span style="font-size: xx-small;"><br />
</span></p>
<div><span style="font-size: xx-small;"> [i] 2009/02/08. &#8220;Two S&amp;P 500 Charts: Rolling 10-Year Returns, Inflation Adjusted Performance&#8221;. J.D. Steinhilber @ Seeking  Alpha.<br />
</span></div>
<div><span style="font-size: xx-small;"> [ii] 1999/01/01-2009/01/01. MSCI Barra. [<a href="http://www.mscibarra.com/products/indices/international_equity_indices/gimi/stdindex/performance.html" target="_blank">www.mscibarra.com/products/indices/international_equity_indices/gimi/stdindex/performance.html</a>]<br />
</span></div>
<div><span style="font-size: xx-small;"> [iii] 2010/02/04.  U.S. Dollar Inflation Calculator. [<a href="http://www.usinflationcalculator.com/inflation/current-inflation-rates/" target="_blank">www.usinflationcalculator.com/inflation/current-inflation-rates/</a>]<br />
</span></div>
<div><span style="font-size: xx-small;"> [iv] 2009/11. Summary data tables. OECD Economic Outlook No. 86.<br />
</span></div>
<div><span style="font-size: xx-small;"> [v] 2010/02/04. &#8220;Service Sector Remains in a Rut, While Job Losses Slow&#8221; by  Sara Murray and Kathleen Madigan. Wall Street Journal.<br />
</span></div>
<div><span style="font-size: xx-small;"> [vi] 2009/05/09. &#8220;Demand Down for Foreign Worker Visas&#8221;. CNN Money.<br />
</span></div>
<div><span style="font-size: xx-small;"> [vii] 2009/02/04 &#8211; 2010/02/04. Symbol Lookup: ^DJI. Yahoo! Finance.<br />
</span></div>
<div><span style="font-size: xx-small;"> [viii] 2010/02/01. &#8220;Sickly Recovery&#8221; by Martin Hutchinson. Business Standard.</span></div>
</div>
<table border="0" cellspacing="0" cellpadding="5" width="100%">
<tbody>
<tr>
<td align="left"><span style="font-family: Arial,Helvetica,sans-serif; color: #000000; font-size: x-small;"> <span style="font-size: x-small;">For a more in-depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar,  read Peter Schiff&#8217;s 2008 bestseller &#8220;The Little Book of Bull Moves in Bear Markets&#8221; and his newest release &#8220;Crash  Proof 2.0: How to Profit from the Economic Collapse.&#8221; <a href="http://r20.rs6.net/tn.jsp?et=1103002753403&amp;s=774&amp;e=001bQtMRVnQPyWHGfJZ01lOJIQK4Zzbyq_FGcBTf19tqZjOR_gXRazJjJ5WmnGmQp3R0DUnhnBUBavwuqJWVSI-HVzWcTiciNJeCGKLmUs-LuRbBB0O9tnOao9sa4S50TRXin5TQ1FuQc1jh6EJZGcPdWeSLFWKcrzjGUg8YYEOBzJweQtJT5XMJXRqegJQg7lbw3k-PP7P_Pz_IGcYwJqAfZPzfxJF5Wk0" target="_blank">Click here to learn more</a>.</span></span></p>
<p>More importantly, don&#8217;t let the great deals pass you by. Get an inside view of Peter&#8217;s playbook with his new Special Report, &#8220;Peter Schiff&#8217;s Five Favorite Investment Choices for the Next Five Years.&#8221; <a href="http://r20.rs6.net/tn.jsp?et=1103002753403&amp;s=774&amp;e=001bQtMRVnQPyUtRDG3VqmX7judIaG3k2-mJLyU8N-L9zsNe-nynLRHZvUuYSK77lVdz82X1FX2ssmGhDQ5I4t5uZgEIMIASipPj6R1eD2MtMRp0iVomEZ3qp0uzmwcZC5i32EIdbOVuxhEecNk-MFqRtKf6r2ddRAoW0YWhEg4wZxiDNXdj4X_hp1OipiQnifgIhrJzEGK7R3u5U1Kzc446kPhPUjFdLqzFXmjE40ddwGCDUdnv9RUXDxbLVUuzCx5t4Mv5BNgcnLqu9fk_GTQQgkjWJMXPG9b" target="_blank">Click here to download the report for free</a>. You can  find more free services for global investors, and learn about the Euro  Pacific advantage, at <a href="http://r20.rs6.net/tn.jsp?et=1103002753403&amp;s=774&amp;e=001bQtMRVnQPyXiwXeEr085XvcxFDETikNaC9wFQ8E1S-mlpgbFA5ft8g7tFVy5aE6xDfa_WY3EACQdsPGhmg6O_Lt7VWNOYFmVvyKP9xufOoJiHX4udvBNb1Q9oMBgZewFL1fIiRlzWwMN4TILoWAEqUfC5HufQ3zYmM_dzwh0K6dN1XpZvHiKDc2oWQ7SwV8Tzj9RTILqfZYASyYkLYnrLg==" target="_blank">www.europac.net</a>.</td>
</tr>
</tbody>
</table>
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		<title>Rand Paul, Ron Paul, and family in Washington Post profile</title>
		<link>http://libertymaven.com/2010/02/04/rand-paul-ron-paul-and-family-in-washington-post-profile/8847/</link>
		<comments>http://libertymaven.com/2010/02/04/rand-paul-ron-paul-and-family-in-washington-post-profile/8847/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 14:22:50 +0000</pubDate>
		<dc:creator>Marc Gallagher</dc:creator>
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		<guid isPermaLink="false">http://libertymaven.com/?p=8847</guid>
		<description><![CDATA[A rather long piece on Ron Paul&#8217;s family with a focus on his son Rand&#8217;s Kentucky senatorial bid is in the Washington Post today. It&#8217;s a fairly positive article for the most part, although I do detect some potential sarcastic undertones. Mostly I&#8217;m confused why it is running in the &#8220;Style&#8221; section?
Then again, I suppose [...]]]></description>
			<content:encoded><![CDATA[<p>A rather long piece on Ron Paul&#8217;s family with a focus on his son Rand&#8217;s Kentucky senatorial bid is in the Washington Post today. It&#8217;s a fairly positive article for the most part, although I do detect some potential sarcastic undertones. Mostly I&#8217;m confused why it is running in the &#8220;Style&#8221; section?</p>
<p>Then again, I suppose the article did go into  detail about the clothes everyone was wearing in addition to the politics angle.</p>
<blockquote><p><em>Ron Paul&#8217;s cluster had more gravitational pull. <strong>Wearing a roomy charcoal  suit and comfortable black shoes</strong>, Paul led a spirited discussion of the  pricing index. People with business cards that said &#8220;T.E.A. Party  Patriots&#8221; and &#8220;ConservativeEdge Political Commentator&#8221; waited  impatiently to shake his hand. Economists and self-proclaimed  entrepreneurs offered him copies of his book &#8220;End the Fed&#8221; to sign.</em></p>
<p><em>A few feet away, Rand Paul stood in the middle of his own circle,  <strong>wearing a lighter gray suit with a checkered pattern, and comfortable  black shoes</strong>. Sharon Weaver, 63, drifted from the father to the son and  asked Rand to sign Ron Paul&#8217;s book &#8220;The Revolution: A Manifesto&#8221; below  his father&#8217;s signature.</em></p></blockquote>
<p><a title="Ron and Rand Paul in the Post" href="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/03/AR2010020303643.html" target="_self">Read the full article here.</a></p>
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		<title>How government spending hurts you</title>
		<link>http://libertymaven.com/2010/02/03/how-government-spending-hurts-you/8842/</link>
		<comments>http://libertymaven.com/2010/02/03/how-government-spending-hurts-you/8842/#comments</comments>
		<pubDate>Wed, 03 Feb 2010 15:34:10 +0000</pubDate>
		<dc:creator>Mike Miller</dc:creator>
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		<guid isPermaLink="false">http://libertymaven.com/?p=8842</guid>
		<description><![CDATA[On Monday, President Obama proposed a federal  budget for 2011. It features record-setting spending and borrowing. We  believe it will do more harm than good. Please  tell Congress to oppose this budget and work to cut federal spending. 
You may copy or borrow from the following letter .  . .
I demand [...]]]></description>
			<content:encoded><![CDATA[<p><span style="font-family: Arial;">On Monday, President Obama proposed a federal  budget for 2011. It features record-setting spending and borrowing. We  believe it will do more harm than good. <a href="https://secure.downsizedc.org/etp/campaigns/104" target="_blank">Please  tell Congress to oppose this budget and work to cut federal spending.</a> </span></p>
<p><span style="font-family: Arial;">You may copy or borrow from the following letter .  . .</span></p>
<blockquote dir="ltr"><p><span style="font-family: Arial;">I demand that you oppose President Obama&#8217;s $3.83  trillion budget with its $1.56 trillion deficit. <a href="http://abcnews.go.com/Business/wireStory?id=9715793" target="_blank">http://abcnews.go.com/Business/wireStory?id=9715793</a></span></p>
<p><span style="font-family: Arial;">* the deficit alone will be larger than individual  and corporate income taxes combined <a href="http://www.usgovernmentrevenue.com/classic.html#usgs30210" target="_blank">http://www.usgovernmentrevenue.com/classic.html#usgs30210</a></span><span style="font-family: Arial;"><br />
* the cost of the federal government will be over $36,000 per family<br />
* of which $17,000 will be new debt <a href="http://www.washingtonwatch.com/blog/2010/02/01/washingtonwatch-com-digest-february-1-2010/" target="_blank">http://www.washingtonwatch.com/blog/2010/02/01/washingtonwatch-com-digest-february-1-2010/</a></span></p>
<p><span style="font-family: Arial;">The cost of the federal government is vastly  greater than the benefits it provides. And the American people don&#8217;t  want such a bloated budget. According to a January 29 Rasmussen Report .  . . <span id="more-8842"></span><a href="http://tinyurl.com/yb7v9tp" target="_blank">http://tinyurl.com/yb7v9tp</a></span></p>
<blockquote dir="ltr"><p><span style="font-family: Arial;">**53% of likely voters now believe that decreasing  the level of government spending will help the U.S. economy**</span></p></blockquote>
<p><span style="font-family: Arial;">They&#8217;re right! A report by the Heritage Foundation  shows that . . . <a href="http://www.heritage.org/research/budget/bg1831.cfm" target="_blank">http://www.heritage.org/research/budget/bg1831.cfm</a></span></p>
<p><span style="font-family: Arial;">* numerous studies indicate that growth in  government spending harms the economy and increases unemployment<br />
* nations such as Ireland, New Zealand, and Slovakia experienced  tremendous growth once they slashed the size of government</span></p>
<p><span style="font-family: Arial;">This is because government spending is less  efficient and often destructive . . . </span></p>
<p><span style="font-family: Arial;">* government spending is less efficient because it  allocates resources based on politics, not on market price signals<br />
* if the spending is funded by taxes, private consumption and saving is  reduced<br />
* if the spending is funded by borrowing, there is less capital for  private investment<br />
* borrowing could also lead to monetary inflation, resulting in price  inflation<br />
* government programs distort personal incentives in many areas, such as  retirement savings and healthcare</span></p>
<p><span style="font-family: Arial;">Follow the will of the American people. We  understand that Big Government is harmful. Make it your priority to work  on cutting the size of government and reforming our entitlement  programs. The proposed spending freeze isn&#8217;t enough, and is clearly  fraudulent given the fact that federal spending will continue to soar.  Give us real spending cuts, not con jobs.</span></p>
<p><span style="font-family: Arial;">If you take the lead on this issue, you will be  rewarded, but if you don&#8217;t, you may be fired from your position. </span></p></blockquote>
<p><span style="font-family: Arial;">END LETTER</span></p>
<p><span style="font-family: Arial;">You can send your message using DownsizeDC.org&#8217;s  Educate the Powerful System. <a href="https://secure.downsizedc.org/etp/campaigns/104" target="_blank">https://secure.downsizedc.org/etp/campaigns/104</a></span></p>
<p><span style="font-family: Arial;">Please also consider making a contribution or  starting a monthly pledge to further our work. <a href="https://secure.downsizedc.org/contribute/" target="_blank">https://secure.downsizedc.org/contribute/</a></span></p>
<p><span style="font-family: Arial;">Jim Babka<br />
President<br />
DownsizeDC.org</span></p>
<p><span style="color: green;"><strong>D o w n s i z e r &#8211; D i s p a t c h</strong></span></p>
<p>Official email newsletter of <a href="http://www.downsizedc.org/" target="_blank">DownsizeDC.org, Inc.</a> &amp; <a href="http://www.downsizedc.com/" target="_blank">Downsize DC Foundation</a>.</p>
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		<title>Common Sense Fixes the Job Market</title>
		<link>http://libertymaven.com/2010/02/02/common-sense-fixes-the-job-market/8837/</link>
		<comments>http://libertymaven.com/2010/02/02/common-sense-fixes-the-job-market/8837/#comments</comments>
		<pubDate>Wed, 03 Feb 2010 03:58:43 +0000</pubDate>
		<dc:creator>Jake Towne</dc:creator>
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&#8220;Economics consists of looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups&#8230; The economic goal of any nation, as of any individual, is to get the greatest results with the [...]]]></description>
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<p><strong>&#8220;Economics consists of looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups&#8230; The economic goal of any nation, as of any individual, is to get the greatest results with the least effort.&#8221; </strong>- economist Henry Hazlitt, <a href="http://towneforcongress.com/lots-more/educational-resources">Economics in One Lesson</a></p>
<p><em>Originally published February 2, 2010 at </em><a href="http://towneforcongress.com/economy/common-sense-fixes-the-job-market-1" target="_blank"><em>http://towneforcongress.com/economy/common-sense-fixes-the-job-market-1</em></a></p>
<p>Not only has the government and the Federal Reserve caused the financial crisis with <a href="http://towneforcongress.com/platform-issues/federal-reserve">excessive money-printing</a>, <a href="http://towneforcongress.com/economy/lecture-why-the-stimulus-plan-will-fail-and-a-better-alternative-1">reckless spending</a>, <a href="http://towneforcongress.com/platform-issues/bailouts-and-corporatism">bailouts and corporatism</a>, but <strong>the government is fully responsible for the rampant unemployment we see in our country today</strong>. While the newspaper headlines of 10% use the Bureau of Labor and Statistics U-3 figure.  However, the government&#8217;s broadest indicator of unemployment, the U-6 figure which includes &#8216;discouraged&#8217; and &#8216;marginally attached&#8217; workers plus part-time workers who desire a full-time job <a href="http://www.bls.gov/news.release/empsit.t12.htm">is currently over 17%</a>. However, the U-6 does not account for long-term discouraged workers who have not been able to find a job, and economist John Williams estimates true employment to be 22% <a href="http://www.shadowstats.com/alternate_data/unemployment-charts">as seen below</a>.</p>
<p><span id="more-8837"></span></p>
<p><span style="color: #000000;"><span style="font-family: Arial, sans-serif;"><span style="font-size: small;"><img class="alignright" style="margin: 5px;" src="http://towneforcongress.com/uploads/image/henryhaz.jpg" alt="" hspace="5" vspace="5" width="270" height="205" align="right" /></span></span></span></p>
<p><a title="Visit ShadowStats.com" href="http://www.shadowstats.com/"><img class="alignleft" style="border: 0pt none;" src="http://shadowstats.com/imgs/sgs-emp.gif?hl=1" border="0" alt="Chart of U.S. Unemployment" width="350" height="224" /><br />
</a></p>
<p>Before listing some of the governments&#8217; economic interventions and listing solutions to them, let&#8217;s pause for a second and ask a couple important questions: </p>
<p><img class="alignright" style="margin: 5px 10px;" src="http://towneforcongress.com/uploads/image/portrait-color%288%29.jpg" alt="" hspace="10" vspace="5" width="186" height="252" align="right" /></p>
<p><em><strong>Why does a firm or entrepreneur create a job at all?</strong></em> The ultimate reason is to realize a profit, an overall economic gain, or to “make money.” Firms do not create jobs for pleasure, all businesses entail risk while seeking to create profits.   </p>
<p><em><strong>Why does someone accept a job?</strong></em> Sure, to meet the basic necessities of life – food, shelter, clothing, and health care when sick &#8211; but the individual chooses to work ultimately for the same reason – an overall economic gain, to make a profit and “make money.” In the economic sense, by the very act of working each individual demonstrates a preference to their current employment over employment with all other firms, or to leisure time.</p>
<p>Therefore both the employer and employee enter into a contract because they expect a <em><strong>mutual benefit</strong></em>. Employment is just like any other economic transaction – when you purchase a loaf of bread, you demonstrate your preference of the bread over the currency, and likewise the supermarket prefers your currency over the bread. When one works for a firm, the firm obviously prefers to have the work completed versus not having hired anyone at all. Likewise, the employee prefers the benefits gained from working rather than not working for the firm. <strong>Mutually beneficial transactions are the heart of any market economy.</strong></p>
<p>The importance of sound money to the job market cannot be understated. Both firms and individuals need a sound method of economic calculation to gauge their profit or loss. I <a href="http://towneforcongress.com/platform-issues/sound-money-and-jobs">previously remarked</a> that merely increasing the number of dollars certainly does not guarantee a profit since the dollar&#8217;s purchasing power is dropping courtesy the printing presses of <a href="http://towneforcongress.com/platform-issues/federal-reserve">the Federal Reserve</a> over the long term. Regardless, the entrepreneur must still attempt to calculate if spending say $10 per hour for a new hire will create the desired profit margin, say just $1 per hour. However, it is not a simple case of the worker deciding between $10 per hour for this firm, working another job, or not working at all. Consider:</p>
<ul>
<li> The firm has significant graduated corporate profit taxes to pay. The federal rate for this progressive tax is roughly 35%, and Pennsylvania has the second highest corporate profit tax of just under 10%. <strong>Pennsylvania has the world&#8217;s second-highest overall corporate tax rate at 41.5%</strong>. <strong>(1)</strong></li>
<li> To pay the mandatory Social Security payroll tax, the worker has 6.2% removed from paychecks. The employer must pay a matching 6.2% that the employee never receives, <strong>resulting in a 12.4% flat tax</strong>. <strong>(2)</strong></li>
<li> To pay the mandatory Medicare payroll tax, the worker has 1.45% removed from paychecks. The employer must pay a matching 1.45% that the employee never receives, <strong>resulting in a 2.9% flat tax</strong>. <strong>(2)</strong></li>
<li> The worker pays approximately <strong>1-2% in local payroll taxes</strong>, depending on the locality.</li>
<li> <strong>To pay Pennsylvania state income taxes, a flat tax of 3.07%</strong> is removed from workers&#8217; paychecks. <strong>(3)</strong></li>
<li> For federal and state unemployment “insurance” mandates, the firm pays anywhere <strong>from 2-6% of pay</strong>. <strong>(4)</strong></li>
<li> Employers pay mandated workman&#8217;s compensation tax, and the national average is <strong>around 1.5% of pay</strong>.  <strong>(5)</strong></li>
<li> <strong>These taxes all precede the most dreaded tax of them all, the graduated federal income tax.</strong> Let&#8217;s be generous and assume that just 15% net of the employee&#8217;s pay is withheld, although 20-30% is by no means uncommon. <strong>(6)</strong></li>
<li> <strong>Lastly, to pay for the wild money-printing of the state, everyone pays the insidious hidden tax of inflation. In 2009, the inflation tax on savings in banks was estimated at roughly <em>negative 8%</em>. (7)<br />
</strong></li>
</ul>
<p>I will not factor in significant property taxes, the 6% Pennsylvania sales tax on goods and services, the 32-cent per gallon PA tax on gasoline, the $1.35 per pack PA tax on cigarettes, the $6.65 per gallon PA tax on spirits, capital gains and taxes on interest, state registration and licensing, etc., etc. <strong>(8)</strong> Plus, note I have not listed the skyrocketing cost of health care – my solutions are <a href="http://towneforcongress.com/platform-issues/health-care">in my plank here</a> and outlined in “<a href="http://towneforcongress.com/economy/health-care-solutions">Health Care Solutions</a>.” Obviously, the firm also has many other financial obligations as well – property, capital expenditures, overhead.</p>
<p><img class="alignleft" style="margin: 5px 10px;" src="http://towneforcongress.com/uploads/image/AS%20GOOD%20AS%20GOLD%20Horiz%2810%29.jpg" alt="" hspace="10" vspace="5" width="336" height="140" align="left" />So, when one works it all out, the firm-worker contract calculation is much more complicated than just $10 per hour and $1 profit to the firm. Since the inflation tax (~8%) and the corporate profit tax (41.5%) adds up to about 50%, the firm really needs the employee to generate $2 per hour in profit for the firm. Meanwhile, the firm must pay roughly $11-$12 to employ the worker.  So, the worker needs to generate around $14 per hour to be worth the paycheck and make the firm profitable, <strong>but yet the worker only receives about $7 in take-home pay.</strong></p>
<p>To compound the matter, the government forbids firms to pay rates lower than the federal minimum wage of $7.25 per hour, which prices people out of jobs they might otherwise be able to fulfill. <strong>(9)</strong></p>
<p>So the common sense solutions I propose to quickly fix the job market, in no particular order, are: <strong>(see also 10)</strong></p>
<ol>
<li> <strong>Remove laws that threaten firms with frivolous lawsuits when firing workers</strong>. Not only would firms would be more apt to hire new workers, but common sense solutions, such as prearranged separation compensation for sudden termination in the contract could instead become the norm.</li>
<li> <strong>Remove laws that prevent firms from hiring workers by mandating criteria outside of the only question that really matters – can they do the job?</strong> Firms should be able to hire whom they please, which includes legitimate concerns such as whether they will stay with the firm long enough to warrant the investment in their training.</li>
<li> <strong>Remove the mandate for the employer to withhold income for all payroll taxes.</strong> The individual can then decide how best to use the funds, even if it is just to earn interest before having to pay the taxes. This reduces transaction costs for the employer, and gives households more flexibility in economic planning.</li>
<li> <strong>Permanently reduce (and preferably abolish) the 9.99% Pennsylvania state corporate tax so more firms will prefer our state to the rest of the nation.</strong> While reducing the corporate profit tax on the federal level will also make American firms more competitive, Pennsylvanians have more control over state legislators than the remainder of federal Congress, so this would be the most effective first step.</li>
<li> <strong>Remove the mandate for the employer to offer workman&#8217;s compensation.</strong> Or, just leave it up to the worker to decide if the 1.5% would be better off left in their paycheck. Likely this would create a competitive private market for workman&#8217;s compensation insurance that is independent of the employer.</li>
<li> <strong>Make enrollment in the Social Security and Medicaid programs voluntary instead of mandatory.</strong> These schemes are <a href="http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm">woefully underwater</a> with $14 trillion in unfunded liabilities for Social Security and a whopping $85 trillion for Medicaid. Put in place a gradual phase-out plan so retirees can still receive the funds they contributed, while younger generations can escape the plundering since the programs likely will not exist by the time they are ready to retire. I would also like to <a href="http://towneforcongress.com/platform-issues/sound-money-and-jobs">point out</a> the Social Security payments, for instance, should be almost <em><strong>DOUBLE</strong></em> the current levels since the government has been fudging the inflation numbers for many years.</li>
<li> <strong>Abolish the federal income tax since it is not only immoral, but unnecessary.</strong> <a href="http://towneforcongress.com/platform-issues/income-tax">Details here.</a> If this step is too radical for Congress – it&#8217;s not, for most of our history there was either no income tax or a negligible one &#8211; surely a tax holiday could be announced to stimulate people to work, and make permanent cuts to wasteful federal spending as I <a href="http://towneforcongress.com/economy/talk-on-monetary-policy-to-cc-upper-perkiomen-valley-for-small-government-1">outlined here</a>.</li>
<li> <strong>Remove the unfair labor union laws that forbid employers to hire new workers who would do the same jobs for less.</strong> There is nothing wrong with voluntary unions that work for safer working conditions by negotiating with employers, but the use of force and coercion to hijack control of a workplace from the firm that risks its owners&#8217; capital to provide the employment in the first place is immoral.</li>
<li> <strong>Restore sound money to remove the problems that inflation causes for entrepreneurs and individuals alike. </strong>For full details, read my <a href="http://towneforcongress.com/platform-issues/sound-money-and-jobs">Sound Money and Jobs plank</a> as well as the <a href="http://towneforcongress.com/platform-issues/federal-reserve">Federal Reserve plank</a>.</li>
<li> <strong>Repeal the Sarbanes-Oxley Acts&#8217; regulations which are projected to cost firms over $100 billion per year since 2002.  (11) </strong><span style="color: #222222;">Following the Enron and WorldCom frauds, Congress passed the <a href="http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act">Sarbanes-Oxley Act</a>, which has failed to prevent rampant fraud in the financial system. The former NASDAQ Chairman, Madoff, is one such example, while the Wall Street Journal exposed <a href="http://online.wsj.com/article/SB10001424052748704107104574569911049472616.html">Scott Rothstein&#8217;s billion-dollar ponzi scheme</a> as well. SarbOx legislation has placed American firms at a needless disadvantage to the rest of the world. The question is not which additional regulations were needed &#8211; those committing fraud will always seek to cover their tracks &#8211; but rather how many other frauds exist.</span></li>
<li> <strong>Slash the $1.1 trillion per year costs of federal regulatory compliance. </strong><strong>(12) </strong>These regulations and paperwork costs are especially harsh for small businesses, and serve as barriers to new startups.</li>
<li> <strong>Abolish federal minimum wage laws, or at least move them much lower so workers are not priced out of jobs.</strong> The most common rebuttal in support of minimum wage laws is that if you make less than minimum wage, you can&#8217;t sustain yourself. However, you must disperse the bad logic around minimum wage laws – the law really says its better for someone to be unemployed and paid nothing rather than be “exploited” and paid less than $7.25 an hour. Likewise, if raising minimum wage secures better jobs, why not raise it to $12 or $20 an hour? Obviously, minimum wage laws can only increase unemployment.</li>
</ol>
<p>This labor exploitation theory <a href="http://mises.org/story/1729">came from Karl Marx</a>, the founder of communism, and completely overlooks the fact that there is no coercion in a market-based contract – an individual can just as easily decide not to accept less then $7.25 an hour by their own choice. Again, it is a question of mutual benefit for both the firm and the worker.</p>
<p>An individual can decide if they are willing to mow lawns or wash dishes for $5 an hour, tutor adults in the evenings or home school a friend&#8217;s child for a token $2 an hour, or sell a firm&#8217;s goods just for commission. A CEO should be able to decide to work for $1 a year if he believes he will turn around the firm and receive compensation later. A student or aspiring actor should be able to work a dream internship or prospective theater role for free – or even pay the firm to provide the opportunity – since they believe it will lead to greater opportunities later on.</p>
<p>Well, those are the solutions!  Even if just some of them are implemented, they will all stimulate new jobs and are guaranteed to work very quickly and put an end to all this unemployment nonsense&#8230; or you can listen to the drab, dime-a-dozen Republocrat solutions that <em><strong>NEVER WORK</strong></em> and <span style="text-decoration: underline;"><strong>got our country in this whole mess in the first place</strong></span>. These primarily consist of resorting to the printing press or market interventions such as the failed economics of any government-sponsored stimulus plan. See “<a href="http://towneforcongress.com/economy/lecture-why-the-stimulus-plan-will-fail-and-a-better-alternative-1">Why the Stimulus Plan Will Fail&#8230; and a Better Alternative</a>” where I debunk stimulus plan economics in January 2009.</p>
<p><strong><img class="alignleft" style="margin: 0px 5px;" src="http://towneforcongress.com/uploads/image/Henry_hazlitt.jpg" alt="" hspace="5" vspace="0" width="200" height="250" align="left" /></strong></p>
<p>For instance, even recent actions of Congress like <a href="http://www.govtrack.us/congress/bill.xpd?bill=h111-4508">HR 4508</a>&#8217;s granting of additional loans to the Small Business Administration are counterproductive. Please understand I do not challenge the fact that small businesses receiving subsidies will benefit. However, the danger lies in having federal bureaucrats decide which firms are to be gifted with special unfair advantages over all other competing firms.  As Hazlitt wrote <a href="http://towneforcongress.com/lots-more/educational-resources">in his first chapter,</a> the damage to <em><strong>ALL</strong></em> groups must be assessed as well as the handouts given to the privileged groups.</p>
<p>Any rational person will also note that cronyism and corruption will exist, and firms may counter-productively elect to dedicate more resources to lobby for government handouts rather than focusing on providing the goods and services that consumers desire. Plus, always remember that <em><strong>GOVERNMENT HAS NOTHING</strong></em> – it must first tax or create money out of thin air to be able to distribute funds in the first place!</p>
<p>So, the truth is that the mass unemployment we have today is purely a creation of government interventions in modern market economies. In today&#8217;s world, I assure you there is no shortage of work to be done, it is only a question of how best to generate the goods and services we all want and how best to increase our standard of living. As seen by the USSR&#8217;s example, economic central planning never works, planning by individuals unlimited by the constraints of government will result in prosperity. Government&#8217;s only role is to preserve individual liberties by enforcing punishments for fraud, contract violations, theft, and acts of aggression against the sovereign individual.</p>
<p>In conclusion, the only barrier preventing our society from succeeding in fixing the unemployment problem is the separation of the state&#8217;s interventions from the economy.</p>
<p>Jake Towne</p>
<p><em>February 2, 2010</em> Also highly suggested reading is &#8220;<a href="http://towneforcongress.com/economy/the-governments-war-on-main-street-1">The Government&#8217;s &#8216;War&#8217; on Main Street</a>&#8221;</p>
<p><a href="http://towneforcongress.com/lots-more/article-archives">Article Archives </a></p>
<p>________________________</p>
<p><em>Source List</em></p>
<p>(1) <strong>Hodge, Scott.</strong> 2008.  &#8220;<a href="http://www.taxfoundation.org/files/ff119.pdf">U.S. States Lead the World in High Corporate Taxes</a>.&#8221; http://www.taxfoundation.org/files/ff119.pdf</p>
<p>(2) <a href="http://www.socialsecurity.gov/pubs/10003.html"><strong>Social Security Online.</strong></a> 2010.  http://www.socialsecurity.gov/pubs/10003.html</p>
<p>(3) <strong>Tax Foundation</strong>.  <a href="http://www.taxfoundation.org/files/f&amp;f_booklet_midyear-20090723.pdf">2009 Facts and Figures</a>.  p. 17/50. http://www.taxfoundation.org/files/f&amp;f_booklet_midyear-20090723.pdf</p>
<p>(4) The federal (FUTA) and state (SUTA) unemployment taxes are fairly complicated, but worthwhile since it is a fairly furtive way for the government to tax firms, and even assist in their destruction.</p>
<p>The firm pays up to 6.2% on the first $7,000 in wages for each employee under FUTA.  Many Pennsylvania firms receive a 5.4% state unemployment discount resulting in the .08% tax that some people recognize.  It is usually $56 per person, front loaded to hit in the beginning of the year because it is on the first $7,000 in wages.  These funds are moved into respective federal FUTA accounts.</p>
<p>If Pennsylvania borrows from FUTA and does not pay back the unemployment loan, the discounted rate is then less than 5.4% <strong>and the firm pays the difference</strong>.  If PA doesn’t pay back the feds, then <em><strong>EVERY</strong></em> company in PA will pay an additional tax, say 1%, and will pay 1.08% for each person still employed on the first $7,000 in wages or $75.60 each.  This is a tricky method of raising taxes since the increase happens automatically.  Last year the PA tax went from 0.06% to 0.08%.</p>
<p>Now, there is also a <strong>SEPARATE</strong> state unemployment tax rate (SUTA) that is paid by the firm on the first $8,000 in wages for PA.  The rate is based on a firm&#8217;s ‘experience rate’ meaning the more turnover a company has the higher the rate.  For example, in 2009 a firm might be at 6% tax on the first $8,000 in wages for EVERY current employee.  Since many firms had layoffs in 2009, the 2010 rates can rise fairly dramatically &#8211; 1-5% increases are likely fairly common.  Again, the tax increase is built right in, <strong>but is invisible to the employee</strong>.  This tax is paid directly from the firm&#8217;s cash reserves. As more employees are laid off, the company’s reserves are depleted at a faster rate which increases the tax rate for the following year.  Then the firm gets nailed with an unexpected increase in taxes, lays off more employees, and the downward spiral continues.  <strong>S0, when Congress extends unemployment, this may appear to assist the unemployed, but it is leeching the firms of capital and accelerating their destruction and ability to provide new jobs. </strong></p>
<p>Remember, since the tax is on the first $7,000-$8,000 in salary, firms are also increasing reluctant to hire new employees.  Thanks to RH for explaining this in detail.  <a href="http://payroll.intuit.com/payroll_resources/payroll_method/index.jsp">This source</a> explains in far less detail.</p>
<p>(5) <strong>National Academy of Social Insurance</strong>.  2007.  &#8220;<a href="http://www.nasi.org/sites/default/files/research/Workers_Comp_Highlights_2007.pdf">Workers&#8217; Compensation Highlights</a>.&#8221; http://www.nasi.org/sites/default/files/research/Workers_Comp_Highlights_2007.pdf</p>
<p>(6) <strong>Towne, Jake</strong>. 2009.  <a href="http://towneforcongress.com/platform-issues/income-tax">Income Tax Plank</a>.  http://towneforcongress.com/platform-issues/income-tax</p>
<p>(7) <strong>Towne, Jake</strong>. 2010.  <a href="http://towneforcongress.com/platform-issues/sound-money-and-jobs">Sound Money and Jobs Plank</a>.  http://towneforcongress.com/platform-issues/sound-money-and-jobs</p>
<p>(8) <strong>Tax Foundation</strong>.  <a href="http://www.taxfoundation.org/files/f&amp;f_booklet_midyear-20090723.pdf">2009 Facts and Figures</a>.  pp. 23, 26-28 of 50. http://www.taxfoundation.org/files/f&amp;f_booklet_midyear-20090723.pdf</p>
<p>(9) <strong>Department of Labor</strong>.  January 1, 2010. &#8220;<a href="http://www.dol.gov/whd/minwage/america.htm">Minimum Wage Laws in the States</a>.&#8221; http://www.dol.gov/whd/minwage/america.htm</p>
<p>(10) <strong>Rockwell, Llewellyn H. </strong>2010.  &#8220;<a href="http://www.lewrockwell.com/rockwell/fix-jobs-problem140.html">How to Fix the Jobs Problem</a>.&#8221; http://www.lewrockwell.com/rockwell/fix-jobs-problem140.html</p>
<p>(11) <strong>Zhang, Ivy</strong>.  2005.  &#8220;<a href="http://w4.stern.nyu.edu/accounting/docs/speaker_papers/spring2005/Zhang_Ivy_Economic_Consequences_of_S_O.pdf">Economic Consequences of the Sarbanes-Oxley Act of 2002</a>.&#8221;  pp. 22-23/68. Zhang also notes that the equity market loss may have been as high as $1.4 trillion.  http://w4.stern.nyu.edu/accounting/docs/speaker_papers/spring2005/Zhang_Ivy_Economic_Consequences_of_S_O.pdf</p>
<p>(12)<strong> Crain, W. Mark. </strong>2005.  &#8220;<a href="http://www.sba.gov/advo/research/rs264tot.pdf">The Impact of Regulatory Costs on Small Firms</a>.&#8221; p. 8/95.  http://www.sba.gov/advo/research/rs264tot.pdf</p>
<p>(13) <strong>Hazlitt, Henry. </strong>1946.  &#8220;<a href="http://fee.org/library/books/economics-in-one-lesson/">Economics in One Lesson</a>.&#8221; http://fee.org/library/books/economics-in-one-lesson/</p>
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		<title>Virginia Senate votes to nullify Obamacare mandate</title>
		<link>http://libertymaven.com/2010/02/01/virginia-senate-votes-to-nullify-obamacare-mandate/8827/</link>
		<comments>http://libertymaven.com/2010/02/01/virginia-senate-votes-to-nullify-obamacare-mandate/8827/#comments</comments>
		<pubDate>Tue, 02 Feb 2010 02:38:50 +0000</pubDate>
		<dc:creator>Marc Gallagher</dc:creator>
				<category><![CDATA[Activism]]></category>
		<category><![CDATA[Big Government]]></category>
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		<category><![CDATA[states rights]]></category>
		<category><![CDATA[10th amendment]]></category>
		<category><![CDATA[ambiguity]]></category>
		<category><![CDATA[assessment fee]]></category>
		<category><![CDATA[big win]]></category>
		<category><![CDATA[family coverage]]></category>
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		<category><![CDATA[health insurance]]></category>
		<category><![CDATA[health insurance coverage]]></category>
		<category><![CDATA[holtzman]]></category>
		<category><![CDATA[individual insurance coverage]]></category>
		<category><![CDATA[jill holtzman vogel]]></category>
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		<description><![CDATA[The Virginia State Senate voted today 23-17 to add a provision to the Virginia State Code that would exempt Virginians from being forced by the federal government to participate in any health care plan. Furthermore, the provision exempts Virginians from having to pay a fine or fee for not participating.
The text of the legislation sponsored [...]]]></description>
			<content:encoded><![CDATA[<p>The Virginia State Senate voted today 23-17 to add a provision to the Virginia State Code that would exempt Virginians from being forced by the federal government to participate in any health care plan. Furthermore, the provision exempts Virginians from having to pay a fine or fee for not participating.</p>
<p>The text of the legislation sponsored by Jill Holtzman Vogel reads as follows:</p>
<blockquote><p><em>No resident of this Commonwealth, regardless of whether he has or is eligible for health  insurance coverage under any policy or program provided by or through his employer, or a  plan sponsored by the Commonwealth or the federal government, shall be  required to obtain or maintain a policy of <strong>individual</strong> insurance coverage.  No provision of this title shall render a resident of this Commonwealth liable for any  penalty, assessment, fee, or fine as a result of his failure to procure or obtain  health insurance coverage.</em></p></blockquote>
<p>This is a big win for Virginians, the 10th Amendment, and liberty. The fight is not over though. I highlight the word &#8220;individual&#8221; above because it worries me. Does this mean the federal government <em>can </em>mandate <em>family </em>coverage?</p>
<p>Hopefully this ambiguity will be remedied as the bill moves further along in the legislative process.</p>
<p>Five Democrats voted for the bill. You can find the vote tally on the <a title="SB.417 Tracking Page" href="http://leg1.state.va.us/cgi-bin/legp504.exe?ses=101&amp;typ=bil&amp;val=sb417" target="_self">bill&#8217;s tracking page here</a> and more information is <a title="Donna Holt reports on the VA Senate vote" href="http://www.campaignforliberty.com/blog.php?view=32083&amp;cpg=1" target="_self">available here</a>.</p>
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