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Why Economic Growth Comes from Saving, Not Spending

Why Economic Growth Comes from Saving, Not Spending

According to Nobel Prize-winning economist and former New York Times columnist Paul Krugman, economic slumps with high unemployment are caused by people saving too much instead of spending, and the proper response is for the government to step in and spend more.

I recently joined my colleague Keith Knight in a livestream to debunk that nonsense!

Knight is the Managing Editor of The Libertarian Institute, where I am a Research Fellow. Watch us efficiently dissect Krugman’s economic fallacies in this entertaining and highly educational discussion:

Also mentioned during our discussion was my 2012 book Ron Paul vs. Paul Krugman: Austrian vs. Keynesian Economics in the Financial Crisis. If you’d like to learn more about how the Federal Reserve’s inflationary monetary policy caused the housing bubble that precipitated the 2008 financial crisis, this book is for you!

You’ll learn how “crazy” Ron Paul accurately warned as early as the year 2000 how the Fed’s policy of pushing interest rates artificially low would cause a housing bubble, and how “wise” Paul Krugman advocated that same Fed policy specifically to fuel a housing boom.

Learn more about the book!

Overlord: Thomas Eddlem Unmasks The Empire

Thousands of scholars have taken on the central geopolitical question: Is the United States of America an empire? It’s a fierce debate that has unfolded over decades, places the moral status of our society at stake, and has four prevalent positions:

1.     Libertarian Institute Director Scott Horton says yes, it is an empire and that’s evil.

2.     Neoconservative policy advisor William Kristol says no way, and the U.S. government is righteous and benevolent.

3.     Regime historian Niall Ferguson agrees with Scott that we’re dealing with an empire but agrees with Kristol that it’s all for the good. The world needs more of it.

4.     Director of Asia Engagement at Defense Priorities Lyle Goldstein disagrees with Scott that our government is an empire but also disagrees with Kristol that our government is righteous and benevolent. He might not call it evil, but certainly problematic.

On March 3, the Institute’s William Norman Grigg Fellow Thomas Eddlem dealt a stunning blow to the insidious myth that America is not an empire. In an Institute article entitled “Plutocratic America’s War on the Working Class,” Eddlem illuminated America’s imperial center with a harsh and uncompromising light:

“Establishment Democrats have long whined that working people pay a higher rate of combined income and payroll taxes than billionaires. They’re not wrong. Income from labor is taxed three times (payroll taxes, income taxes, and inflation) while income from capital is taxed only once (capital gains). In America today, capital gains tax is capped at 20%, but labor’s floor is 15.3% with a payroll tax, plus the 3-8% inflation tax, both of which start at dollar one. Add the income tax, which tops out at 39%, and labor is generally taxed at twice the rate of capital. The billionaire who relies upon investments and capital gains for income generally doesn’t pay income taxes or payroll taxes on his gains. And if the billionaire is a real estate baron, he benefits from the inflation that makes his mortgage debt easier to pay.”

To fully appreciate Eddlem’s critique, imagine the following scenario. The U.S. government withdraws from every military alliance, shuts down every single one of its foreign military & intelligence bases & installations, and brings all of our troops, spies, and contractors home. It then grants full independence to all of its territories or in the case of uninhabited ones, leaves them to nature.

This would seemingly free the U.S. government from being categorized by the definition of empires given by American Historian Daniel Immerwahr:

“…polities that have colonies and outposts.”

Now imagine the U.S. government sells Alaska back to Russia and gives Hawaii back to the Kānaka Maoli. The United States has been reduced to the “48 contiguous states,” the “Mainland,” or “CONUS.”

In such a scenario, the U.S. government would still be an empire. Because what are we even talking about? One city, Washington, D.C., ruling over a multiracial, multiethnic, multicultural population spread over 3.1 million square miles. Can you imagine the elite from ancient Persepolis, ancient Athens, and ancient Rome visiting Washington, D.C. and being shown maps of CONUS?

Imagine Emperor Charlemagne visiting the White House and being given a lecture on CONUS by Victor Davis Hanson and Jon Meacham. He would certainly see the analogous nature of the U.S. president and state governors to the emperor and kings of his domain. And while a clever ideologue can make the case that the U.S. government does not extract tribute from its vassals (it actually does; minerals for example), there is no way to hide its extractions from the population of CONUS.

U.S. Supreme Court Chief Justice John Marshall said, “The power to tax involves the power to destroy,” and D.C. crushes American workers with this power every day of their lives. The empire has its intellectual comforters who defend D.C.’s diabolical doings. The despicable Cato Institute is filled with them. Eddlem said:

“The Cato Institute, a regime ‘libertarian’ group inside the Washington DC beltway, spends most of its time focused on federal budgeting, fretting about whether top-level income taxes for the wealthiest are on the wrong side of the Laffer Curve (see here and here). Not surprisingly, more than half of their donations come from just five anonymous billionaire donors ($32.925 million total in 2023), according to its IRS filings. The Cato Institute used to be called the Charles Koch Foundation, after the billionaire who helped found the organization.

Of course, there’s absolutely nothing wrong with finding a few billionaire donors who are willing to support you year after year. But these billionaires know what they are funding, and they are getting return for their investments. And if Cato tried to buck the establishment, its income would dry up. Cato knows its core audience, and it’s not working people.

Like the Democrats, Cato doesn’t even offer the working classes any crumbs. Cato’s institutional slogan may as well be, ‘The poors just aren’t paying enough in taxes.’”

It is highly fitting that Eddlem is the William Norman Grigg Fellow. Grigg argued that to the state’s retail distributors of violence, most civilians are “the mundanes.” Eddlem shows that the entire apparatus of the state views us that way.

If you live in CONUS, welcome to the Empire.

Abolish Draft Registration, Mr. Trump

During Friday’s famous White House meeting, VP Vance criticized Ukrainian President Zelensky for his government’s abduction of men from the streets to fight against Russia. Good for Vance. Conscription is one of the worst things a government can do, especially during a war. As a form of slavery, it goes against every libertarian, or classical liberal, principle. It’s indecent.

Presumably, President Trump shares Vance’s horror. So this is a good time to abolish draft registration here. The penalty for not registering is a maximum five years in prison and a maximum fine of $250,000. President Carter should never have imposed it, and presidents from Reagan onward should have scrapped it. Shame on them for not doing so.

Well, Mr. Trump?

The Crappiest Ship That Couldn’t

r/megalophobia - An LCS (Littoral Combat Ship) out of water.

The Navy continues to fail with the Little Crappy Ship. Some of these non-functional Navy floating welfare programs posing as ships are being retired five years into the alleged 35 year cruise life. As I have mentioned before, between the LCS and the Zumwalt and the Ford, the Navy has not commissioned a successful surface hull since 1991. Currently, the Navy is primarily focusing on decommissioning Freedom-class LCSs but they need to give it up and retire the entire class soonest.

The real littoral combat ship is the adoption of diesel electric submarines and taking advantage of the German Type 214 boats to jump-start the non-nuclear submarine revival that will inform the opening salvos of weighting naval warfare to underwater operations for the remainder of the 21st century.

Surface navies are on life support and the next peer war will prove that point.

The U.S. Navy had originally planned to procure about 55 Littoral Combat Ships. But as the challenges, cost overruns, and design defects inherent in the ship’s design became more and more apparent, the Littoral Combat Ship program was curtained dramatically, and the U.S. Navy only procured a paltry 35 Littoral Combat Ships. A number of the early ship builds have been retired early in order to save costs and better sustain other programs.

https://www.twz.com/air/cracks-in-kc-46-pegusus-tankers-halt-all-deliveries

For a very exhaustive examination of the nuts and bolts of the failed program, go here.

 
Email me at cgpodcast@pm.me

The White House Showdown That Shook Europe: New Episode of the Kyle Anzalone Show

In a fiery White House meeting, Donald Trump and JD Vance clashed with Ukrainian President Volodymyr Zelensky, igniting a political firestorm that sent shockwaves through Europe.As European leaders rush to Zelensky’s defense, is the West fracturing over Ukraine? Plus, Trump weighs cutting all aid, Speaker Johnson warns of a leadership change in Kyiv, and Bernie Sanders calls the push for Zelensky’s resignation “horrific.” Tune in as we break down the high-stakes battle for Ukraine’s future and the global power plays at work!

K46 Refueler Grounded Again

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The last KC135s were produced in the 1960s and the Boeing KC46 was thr program to update and replace it.

It is a disaster.

The crisis continues as the refueler programs continue to crash and burn.

After the inspection, if any cracks are found, “the aircraft will undergo repairs before flying again,” the Air Force explained.

“The cracks were not found on any flight surfaces or hinges, but rather on the primary or secondary structures,” the Air Force told us. 

Boeing told us it is working to fix the problem.

“We are working closely with the customer to assess a potential issue on KC-46A aircraft and to mitigate any potential impact to the fleet and in-production airplanes,” the company told The War Zone after our inquiry about the cracks.

The Pegasus program has been beset by problems even before they were delivered. It was years behind schedule before the flying branch received its first KC-46A in January 2019.

https://www.twz.com/air/cracks-in-kc-46-pegusus-tankers-halt-all-deliveries

 
Email me at cgpodcast@pm.me

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