From Th' Onion :
"WASHINGTON—With unemployment at its highest level in decades, the U.S. Department of Labor issued a report Tuesday suggesting the crisis is primarily the result of millions of Americans just completely blowing their job interviews."
Sunday, September 26, 2010
Saturday, September 25, 2010
We Are The Super Rich
from:
We are the Super Rich « Truth on the Market: Posted on September 15, 2010
We are the Super Rich
Posted by Todd Henderson on September 15, 2010
The rhetoric in Washington about taxes is about millionaires and the super rich, but the relevant dividing line between millionaires and the middle class is pegged at family income of $250,000. (I’m not a math professor, but last time I checked $250,000 is less than $1 million.) That makes me super rich and subject to a big tax hike if the president has his way.
I’m the president’s neighbor in Chicago, but we’ve never met. I wish we could, because I would introduce him to my family and our lifestyle, one he believes is capable of financing the vast expansion of government he is planning. A quick look at our family budget, which I will happily share with the White House, will show him that like many Americans, we are just getting by despite seeming to be rich. We aren’t.
I, like the president before me, am a law professor at the University of Chicago Law School, and my wife, like the first lady before her, works at the University of Chicago Hospitals, where she is a doctor who treats children with cancer. Our combined income exceeds the $250,000 threshold for the super rich (but not by that much), and the president plans on raising my taxes. After all, we can afford it, and the world we are now living in has that familiar Marxian tone of those who need take and those who can afford it pay. The problem is, we can’t afford it. Here is why.
The biggest expense for us is financing government. Last year, my wife and I paid nearly $100,000 in federal and state taxes, not even including sales and other taxes. This amount is so high because we can’t afford fancy accountants and lawyers to help us evade taxes and we are penalized by the tax code because we choose to be married and we both work outside the home. (If my wife and I divorced or were never married, the government would write us a check for tens of thousands of dollars. Talk about perverse incentives.)
Our next biggest expense, like most people, is our mortgage. Homes near our work in Chicago aren’t cheap and we do not have friends who were willing to help us finance the deal. We chose to invest in the University community and renovate and old property, but we did so at an inopportune time.
We pay about $15,000 in property taxes, about half of which goes to fund public education in Chicago. Since we care the education of our three children, this means we also have to pay to send them to private school. My wife has school loans of nearly $250,000 and I do too, although becoming a lawyer is significantly cheaper. We try to invest in our retirement by putting some money in the stock market, something that these days sounds like a patriotic act. Our account isn’t worth much, and is worth a lot less than it used to be.
Like most working Americans, insurance, doctors’ bills, utilities, two cars, daycare, groceries, gasoline, cell phones, and cable TV (no movie channels) round out our monthly expenses. We also have someone who cuts our grass, cleans our house, and watches our new baby so we can both work outside the home. At the end of all this, we have less than a few hundred dollars per month of discretionary income. We occasionally eat out but with a baby sitter, these nights take a toll on our budget. Life in America is wonderful, but expensive.
If our taxes rise significantly, as they seem likely to, we can cut back on some things. The (legal) immigrant from Mexico who owns the lawn service we employ will suffer, as will the (legal) immigrant from Poland who cleans our house a few times a month. We can cancel our cell phones and some cable channels, as well as take our daughter from her art class at the community art center, but these are only a few hundred dollars per month in total. But more importantly, what is the theory under which collecting this money in taxes and deciding in Washington how to spend it is superior to our decisions? Ask the entrepreneurs we employ and the new arrivals they employ in turn whether they prefer to work for us or get a government handout.
If these cuts don’t work, we will sell our house – into an already spiraling market of declining asset values – and our cars, assuming someone will buy them. The irony here, of course, is that the government is working to save both of these industries despite the impact that increasing taxes will have.
The problem with the president’s plan is that the super rich don’t pay taxes – they hide in the Cayman Islands or use fancy investment vehicles to shelter their income. We aren’t rich enough to afford this – I use Turbo Tax. But we are rich enough to be hurt by the president’s plan. The next time the president comes home to Chicago, he has a standing invitation to come to my house (two blocks from his) and judge for himself whether the Hendersons are as rich as he thinks.
We are the Super Rich « Truth on the Market: Posted on September 15, 2010
We are the Super Rich
Posted by Todd Henderson on September 15, 2010
The rhetoric in Washington about taxes is about millionaires and the super rich, but the relevant dividing line between millionaires and the middle class is pegged at family income of $250,000. (I’m not a math professor, but last time I checked $250,000 is less than $1 million.) That makes me super rich and subject to a big tax hike if the president has his way.
I’m the president’s neighbor in Chicago, but we’ve never met. I wish we could, because I would introduce him to my family and our lifestyle, one he believes is capable of financing the vast expansion of government he is planning. A quick look at our family budget, which I will happily share with the White House, will show him that like many Americans, we are just getting by despite seeming to be rich. We aren’t.
I, like the president before me, am a law professor at the University of Chicago Law School, and my wife, like the first lady before her, works at the University of Chicago Hospitals, where she is a doctor who treats children with cancer. Our combined income exceeds the $250,000 threshold for the super rich (but not by that much), and the president plans on raising my taxes. After all, we can afford it, and the world we are now living in has that familiar Marxian tone of those who need take and those who can afford it pay. The problem is, we can’t afford it. Here is why.
The biggest expense for us is financing government. Last year, my wife and I paid nearly $100,000 in federal and state taxes, not even including sales and other taxes. This amount is so high because we can’t afford fancy accountants and lawyers to help us evade taxes and we are penalized by the tax code because we choose to be married and we both work outside the home. (If my wife and I divorced or were never married, the government would write us a check for tens of thousands of dollars. Talk about perverse incentives.)
Our next biggest expense, like most people, is our mortgage. Homes near our work in Chicago aren’t cheap and we do not have friends who were willing to help us finance the deal. We chose to invest in the University community and renovate and old property, but we did so at an inopportune time.
We pay about $15,000 in property taxes, about half of which goes to fund public education in Chicago. Since we care the education of our three children, this means we also have to pay to send them to private school. My wife has school loans of nearly $250,000 and I do too, although becoming a lawyer is significantly cheaper. We try to invest in our retirement by putting some money in the stock market, something that these days sounds like a patriotic act. Our account isn’t worth much, and is worth a lot less than it used to be.
Like most working Americans, insurance, doctors’ bills, utilities, two cars, daycare, groceries, gasoline, cell phones, and cable TV (no movie channels) round out our monthly expenses. We also have someone who cuts our grass, cleans our house, and watches our new baby so we can both work outside the home. At the end of all this, we have less than a few hundred dollars per month of discretionary income. We occasionally eat out but with a baby sitter, these nights take a toll on our budget. Life in America is wonderful, but expensive.
If our taxes rise significantly, as they seem likely to, we can cut back on some things. The (legal) immigrant from Mexico who owns the lawn service we employ will suffer, as will the (legal) immigrant from Poland who cleans our house a few times a month. We can cancel our cell phones and some cable channels, as well as take our daughter from her art class at the community art center, but these are only a few hundred dollars per month in total. But more importantly, what is the theory under which collecting this money in taxes and deciding in Washington how to spend it is superior to our decisions? Ask the entrepreneurs we employ and the new arrivals they employ in turn whether they prefer to work for us or get a government handout.
If these cuts don’t work, we will sell our house – into an already spiraling market of declining asset values – and our cars, assuming someone will buy them. The irony here, of course, is that the government is working to save both of these industries despite the impact that increasing taxes will have.
The problem with the president’s plan is that the super rich don’t pay taxes – they hide in the Cayman Islands or use fancy investment vehicles to shelter their income. We aren’t rich enough to afford this – I use Turbo Tax. But we are rich enough to be hurt by the president’s plan. The next time the president comes home to Chicago, he has a standing invitation to come to my house (two blocks from his) and judge for himself whether the Hendersons are as rich as he thinks.
Wednesday, September 1, 2010
Tuesday, August 17, 2010
Something I said 3 years ago
"The notion that I got from reading the original quote (from the interview, excerpted below) was more about how it could be a metaphor for an economy. That is, the more dynamic an economy becomes, perhaps there is a threshold at which it is TOO dynamic...goes too fast to allow a economic actor to react rationally to it (and it just becomes a series of random success stories).
Furthermore, I could see how the dyamicism introduced by global free trade could potentially, POTENTIALLY, push the rate of change beyond this threshold.
I think economic models must always be careful to figure in some real flesh constants related to the human lifespan (and, though obviously frought with hard to define numbers, constants matched to life STAGES...say, the "3 different phases of an adults work life/career")."
DC: Evolutionary psychology portrays us as having impulses that took form long ago, in a very pre-modern context (say, 10,000 years ago), and now these impulses are sometimes rather ill-adapted to our contemporary world. For example, in a food-scarce environment, we became programmed to eat whenever we can; now, with food abounding in many parts of the world, this impulse creates the conditions for an obesity epidemic. Given that our world will likely continue changing at a rapid pace, are we doomed to have our impulses constantly playing catch up with our environment, and does that potentially doom us as a species?
SK: In fact, we’re not playing catch up; we’re stuck. For any evolutionary change to take place, the environment has to remain more or less constant for many generations, so that evolution can select the traits that are adaptive and eliminate those that are not. When the environment undergoes rapid change within the space of a generation or two, as it has been for the last couple of millennia, if not more, then evolution can’t happen because nature can’t determine which traits to select and which to eliminate. So they remain at a standstill. Our brain (and the rest of our body) are essentially frozen in time — stuck in the Stone Age.
link
Furthermore, I could see how the dyamicism introduced by global free trade could potentially, POTENTIALLY, push the rate of change beyond this threshold.
I think economic models must always be careful to figure in some real flesh constants related to the human lifespan (and, though obviously frought with hard to define numbers, constants matched to life STAGES...say, the "3 different phases of an adults work life/career")."
DC: Evolutionary psychology portrays us as having impulses that took form long ago, in a very pre-modern context (say, 10,000 years ago), and now these impulses are sometimes rather ill-adapted to our contemporary world. For example, in a food-scarce environment, we became programmed to eat whenever we can; now, with food abounding in many parts of the world, this impulse creates the conditions for an obesity epidemic. Given that our world will likely continue changing at a rapid pace, are we doomed to have our impulses constantly playing catch up with our environment, and does that potentially doom us as a species?
SK: In fact, we’re not playing catch up; we’re stuck. For any evolutionary change to take place, the environment has to remain more or less constant for many generations, so that evolution can select the traits that are adaptive and eliminate those that are not. When the environment undergoes rapid change within the space of a generation or two, as it has been for the last couple of millennia, if not more, then evolution can’t happen because nature can’t determine which traits to select and which to eliminate. So they remain at a standstill. Our brain (and the rest of our body) are essentially frozen in time — stuck in the Stone Age.
link
Thursday, August 12, 2010
Hillary Clinton Drags Taliban Leader's Body Through Streets Of Kabul
Just to reiterate, we'd have been a lot better off with Hillary than Obama.
Hillary Clinton Drags Taliban Leader's Body Through Streets Of Kabul
KABUL, AFGHANISTAN—As members of the international press looked on, Secretary of State Hillary Clinton rode on horseback through the streets of Kabul Monday, dragging the mutilated remains of Taliban leader Mullah Abdul Jalil through the dirt behind...
Th'Onion.
Hillary Clinton Drags Taliban Leader's Body Through Streets Of Kabul
KABUL, AFGHANISTAN—As members of the international press looked on, Secretary of State Hillary Clinton rode on horseback through the streets of Kabul Monday, dragging the mutilated remains of Taliban leader Mullah Abdul Jalil through the dirt behind...
Th'Onion.
Tuesday, August 10, 2010
Monday, August 9, 2010
Krugman: Crumbling Infrastructure
Remember that bridge in Minnesota....
Paul Krugman at NYT Op-Ed page: America Goes Dark
"With infrastructure and education crumbling, we’re on the unlit, unpaved road to nowhere."
Paul Krugman at NYT Op-Ed page: America Goes Dark
"With infrastructure and education crumbling, we’re on the unlit, unpaved road to nowhere."
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