Essential Economics for Politicians

The Accountable Capitalism Act Elizabeth Warren unveiled her new idea in an op-ed in the Wall Street Journal. It is her new bill, called the Accountable Capitalism Act. Of course, I have said this before, there is no truth in advertising when it comes to legislation. Whenever Congress passes a bill, the name of the bill is generally the opposite of what the bill actually does. So if they pass a bill called, "Tax Simplification", that means that they just complicated the tax code. But nobody wants to vote for a bill that's called "Tax Complication", so you can't label it "Tax Complication" when that's what we're doing, so you label it Simplification so everybody will like it. This is All About Socialism That's what Elizabeth Warren is doing in her Accountable Capitalism Act. This is not about Capitalism. This is about Socialism. The idea here is that Capitalism is not accountable, and so this act is going to hold Capitalism accountable. In reality, capitalism holds everybody accountable. Under a Capitalist system, everybody is accountable for their own actions. If you screw up, then you have to suffer the consequences. If you make a mistake, it's on you. If your business fails, there's not bail-out. Capitalism is the Ultimate in Accountability So Capitalism is the ultimate in accountability. It's fair and everybody is held accountable for their own decisions and their own actions. What Elizabeth Warren wants to do is to take that accountability away. She wants to have the government get in there and take away the accountability inherent in the Capitalist system. The Socialist Un-Accountability Act Not only is the act mislabeled, it is actually the Socialist Un-Accountability Act. It wants to take people who would normally be accountable and make them unaccountable. It's all Socialism wrapped up in a Capitalist bow. What she wants to do is: * She wants to force corporations with over $1 billion in revenue, regardless of their profit, to appoint at least 40% of their board from the ranks of their workers * She wants to re-install the stakeholder accountability that existed until the 1980's Warren: Profits have Screwed Up the Country I read the op-ed and I listened to her interview with Kramer on CNBC and according to Elizabeth Warren's revisionist version of American History, corporations cared about their stakeholders, meaning their employees, customers, communities up until the 1980's. Then all of a sudden, in the 1980's, everything changed. All of a sudden, it was all about profits. It was all about maximizing shareholder value. And that's what screwed up the country.,
 
This is about Socialism. The idea here is that Capitalism is not accountable, and so this act is going to hold Capitalism accountable. In reality, capitalism holds everybody accountable. Under a Capitalist system, everybody is accountable for their own actions. If you screw up, then you have to suffer the consequences. If you make a mistake, it's on you. If your business fails, there's not bail-out. Capitalism is the Ultimate in Accountability So Capitalism is the ultimate in accountability. It's fair and everybody is held accountable for their own decisions and their own actions. What Elizabeth Warren wants to do is to take that accountability away. She wants to have the government get in there and take away the accountability inherent in the Capitalist system.
 
The case for liberty is for a social process that is free to discover the best social institutions to enliven and realize human dignity through choice and with love. In order for that to happen, we need what might be called, in the tradition of C.S. Lewis, “mere liberty”: the freedom to own, act, speak, think, and innovate. The exercise of such rights is incompatible with government management of the economy and the social order.--Rob Koerner
 
In an earlier post, I noted that Senator Elizabeth Warren has introduced legislation designed to federalize the law of corporate social responsibility. Among other flaws with her proposal, a key one is the proposal to preempt state corporate law with a federal statute.

The U.S. Supreme Court has held repeatedly that the federal securities laws do not preempt state corporate law, but instead place only a limited gloss on the broader body of state law.[1] A fair rule of thumb is that state law is concerned with the substance of corporate governance, while federal law is concerned with disclosure and a limited number of procedural aspects of corporate governance (such as the solicitation of proxies and the conduct of a tender offer).[2]--Stephen Bainbridge
 
The basic case for federalizing corporate law rests on the so-called “race to the bottom” hypothesis. States compete in granting corporate charters. After all, the more charters the state grants, the more franchise and other taxes it collects. According to the race to the bottom theory, because it is corporate managers who decide on the state of incorporation, states compete by adopting statutes allowing corporate managers to exploit shareholders. As the clear winner in this state competition, Delaware is usually the poster-child for bad corporate governance. Interestingly, the two main corporate failures cited to justify the Sarbanes-Oxley Act, Enron and WorldCom, were not Delaware corporations. (They were incorporated in Oregon and Georgia, respectively.)
 
Basic economic common sense tells us that investors will not purchase, or at least not pay as much for, securities of firms incorporated in states that cater too excessively to management. Lenders will not lend to such firms without compensation for the risks posed by management’s lack of accountability. As a result, those firms’ cost of capital will rise, while their earnings will fall. Among other things, such firms thereby become more vulnerable to a hostile takeover and subsequent management purges. Corporate managers therefore have strong incentives to incorporate the business in a state offering rules preferred by investors. Competition for corporate charters thus should deter states from adopting excessively pro management statutes. The empirical research bears out this view of state competition, suggesting that efficient solutions to corporate law problems win out over time.

 
Senator Elizabeth Warren of Massachusetts has one-upped socialists Bernie Sanders and Alexandria Ocasio-Cortez: She proposes to nationalize every major business in the United States of America. If successful, it would constitute the largest seizure of private property in human history.

Warren’s proposal is dishonestly called the “Accountable Capitalism Act.” Accountable to whom?you might ask. That’s a reasonable question. The answer is — as it always is — accountable to politicians, who desire to put the assets and productivity of private businesses under political discipline for their own selfish ends. It is remarkable that people who are most keenly attuned to the self-interest of CEOs and shareholders and the ways in which that self-interest influences their decisions apparently believe that members of the House, senators, presidents, regulators, Cabinet secretaries, and agency chiefs somehow are liberated from self-interest when they take office through some kind of miracle of transcendence.

https://www.nationalreview.com/2018/08/elizabeth-warren-plan-nationalize-everything-woos-hard-left/
 
Bruddah IZ said:
This is about Socialism. The idea here is that Capitalism is not accountable, and so this act is going to hold Capitalism accountable. In reality, capitalism holds everybody accountable. Under a Capitalist system, everybody is accountable for their own actions. If you screw up, then you have to suffer the consequences. If you make a mistake, it's on you. If your business fails, there's not bail-out. Capitalism is the Ultimate in Accountability So Capitalism is the ultimate in accountability. It's fair and everybody is held accountable for their own decisions and their own actions. What Elizabeth Warren wants to do is to take that accountability away. She wants to have the government get in there and take away the accountability inherent in the Capitalist system.
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When everyone is held accountable for their OWN actions you then have a society
that flourishes.

We have a GROWING homeless population because they DO NOT WANT TO BE
ACCOUNTABLE !

A Country cannot subsist off of Leeches, it's doomed for failure....

The Leeches must be removed from the societal tit and either become self sustaining or
they cease to exist.

The Pilgrims found that out real fast and changed.....
Why should it be any different now !!!!
 
nononono said:
When everyone is held accountable for their OWN actions you then have a society
that flourishes.

We have a GROWING homeless population because they DO NOT WANT TO BE
ACCOUNTABLE !

A Country cannot subsist off of Leeches, it's doomed for failure....

The Leeches must be removed from the societal tit and either become self sustaining or
they cease to exist.

The Pilgrims found that out real fast and changed.....
Why should it be any different now !!!!
Click to expand...
We have politicians that would rather bail out a failing company instead of allowing Capitalism to hold them accountable for their actions or lack of. Warren is one of those self proclaimed smart people that never get it. I think the three of them dem socialist should live in Venezuela for a year.
 
Bruddah IZ said:
We have politicians that would rather bail out a failing company instead of allowing Capitalism to hold them accountable for their actions or lack of. Warren is one of those self proclaimed smart people that never get it. I think the three of them dem socialist should live in Venezuela for a year.
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Warren ( The fake Indian )
Cortez ( The Apple biter )
Feinstien ( The " China " Thief )
 
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A woman who woke up from a thirty-year coma in 2018 would be forgiven if she looked around and came to believe our world is falling apart.

Cable news and social media are a steady drumbeat of negativity. There is a sense the world is not right.

Russian collusion. Xenophobia. Antifa. Unite the Right. Stormy Daniels. #MeToo. Mass shootings. The Deep State. It’s a cacophony of angst, outrage, and political anger.

The woman who emerged from her coma would have little or no idea that the world is experiencing an economic miracle, just as most people today do not. But it’s happening just the same.--J. Miltimore
 
Americans Have an Odd View of the Middle Class

Breathless narratives about a “shrinking U.S. middle class” from politicians and media—which often neglect to mention that America’s middle class is shrinking because Americans are getting wealthier—have probably added to the confusion.
 
glance at the chart below reveals that the decline in world poverty took place during the Pax Americana, a period notable for relative peace that witnessed the defeat of socialism and an unprecedented expansion of freedom and trade. (As oppressive as China’s system may be politically, there’s no question it underwent vast economic liberalization beginning in the 1970s.)

world-poverty-since-1820-full.png


It’s unclear if we’re at the beginning of the Pax Americana or its end. Only time will tell.

Whatever the case, the last 70 years reveal what can be achieved when humans and nations work and trade together.
 
https://fee.org/articles/bernie-san...ign-ignores-several-basic-economic-realities/

What Sanders and all lawmakers should know is that as something becomes more expensive, people buy less of it. Sanders seems to understand this when it suits him. In 2015, he said that the way to reduce carbon pollution is to impose a tax on businesses that pollute. A year later, he said that the way to reduce stock market speculation is to impose a tax on people who speculate.

Connecting the dots, imposing a tax on businesses that hire poor workers will reduce the number of poor workers they hire. Why? Because the workers will be more expensive. Bernie Sanders has written a law whose purpose is to harm the working poor.

Sanders and Ocasio 2020!!!!
 
Bruddah IZ said:
https://fee.org/articles/bernie-san...ign-ignores-several-basic-economic-realities/

What Sanders and all lawmakers should know is that as something becomes more expensive, people buy less of it. Sanders seems to understand this when it suits him. In 2015, he said that the way to reduce carbon pollution is to impose a tax on businesses that pollute. A year later, he said that the way to reduce stock market speculation is to impose a tax on people who speculate.

Connecting the dots, imposing a tax on businesses that hire poor workers will reduce the number of poor workers they hire. Why? Because the workers will be more expensive. Bernie Sanders has written a law whose purpose is to harm the working poor.

Sanders and Ocasio 2020!!!!
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Did you hear Bernie didn't even endorse his own kid in the primary because he knew he wouldn't win?
 
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