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Archive for July 25th, 2012

The United Kingdom has a magnificent history and has produced great leaders.

I get inspired, for instance, when I watch these Margaret Thatcher speeches about “public money” and “the poor poorer.” Sort of the same feeling I get when I watch the Gipper talking about Washington being a “company town” and the “unnecessary and excessive growth of government.”

But just as the United States has devolved by moving over time from Reagan to Obama, the United Kingdom has degenerated by going from Thatcher to David Cameron.

Cameron is supposedly a conservative, but it’s more accurate to say he’s an English version of George W. Bush. Some of the lowlights of his tenure include:

And his statist mentality infects other Tory politicians.

Here is a report on the intellectually bankrupt ramblings of another enemy of freedom, as reported by the Telegraph.

David Gauke, a Treasury minister, told The Daily Telegraph that home owners who allow workmen to evade VAT or income tax were forcing others to pay more. …critics accused the Government of being “unnecessarily moralistic” about ordinary people trying to keep their household bills down. …According to a report by the Public Accounts Committee, more than two million people make cash-in-hand payments costing the Treasury an estimated £2  billion. There is no law against paying someone in cash… In a speech to the Policy Exchange think tank, he said that while using Isas and claiming gift aid on charitable donations was acceptable, buying homes through companies to avoid stamp duty and using service companies to reduce income tax was “morally repugnant”. Mr Gauke said: “These schemes damage our ability to fund public services and provide support to those who need it. They harm businesses by distorting competition. They damage public confidence. And they undermine the actions of the vast majority of taxpayers, who pay more in tax as a consequence of others enjoying a free ride.”

Can anyone imagine Margaret Thatcher saying something this offensive?

Particularly since it is Gauke’s views that are “morally repugnant,” not the actions of people who are trying to protect their property from a rapacious and greedy government.

Keep in mind that the burden of government spending in the United Kingdom consumes nearly 49 percent of economic output according to OECD data. That’s more than Greece, Portugal, Ireland, or Spain!

Sort of makes you wonder how long it will take before investors decide that it’s no longer a good idea to lend money to such a profligate government.

The good news is that the English people aren’t as bad as their politicians. As part of the story, the Telegraph is conducting an online poll, which you can see to your left.

Notwithstanding the statolatry of UK politicians, the voting so far is overwhelmingly on the side of taxpayers rather than the government.

But public opinion doesn’t really matter if government policy continues to drift in the wrong direction.

And, as you can see from this data, the long-term outlook for the United Kingdom is very grim. And we know Cameron isn’t doing anything to address this looming crisis.

Not that this makes the UK special. Thanks to reckless entitlement programs, the same data shows that the United States also is headed for Greek-style fiscal chaos.

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In a recent post about Brian Ross and the despicable behavior of ABC News, I included examples of what I categorized as deliberate and accidental media bias.

Here’s a good (or perhaps I should say bad) example of accidental bias, demonstrating how statist premises get incorporated into news reports.

Here’s how the Associated Press began a recent story about expected increases in the poverty rate.

The ranks of America’s poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.

At first glance, the story seems fine. After all, I’ve already reported on the record number of people living in poverty under Obama’s watch.

But my complaint is about the latter part of the sentence, which blithely assumes that the so-called War on Poverty improved the lives of poor people.

Check out this chart, which I first posted back last September.

As you can see, the poverty rate in America was falling at a rapid clip, but progress stopped once the so-called War on Poverty began. And ever since, the poverty rate has stayed relatively constant, oscillating between 11 percent-15 percent.

To be sure, this chart doesn’t prove that Lyndon Johnson’s redistribution programs – such as Medicaid – halted the progress that was being made.

But surely these numbers show that the folks at the Associated Press were smoking crack when they wrote that the War on Poverty led to “gains.”

The left, incidentally, does have their spin on the story. They basically cherry pick two data points and make it seem as if the diminished rate of progress during that time period was because of the War on Poverty.

…poverty never fell below a 1973 low of 11.1 percent. That low point came after President Lyndon Johnson’s war on poverty, launched in 1964, created Medicaid, Medicare and other social welfare programs. “I’m reluctant to say that we’ve gone back to where we were in the 1960s. The programs we enacted make a big difference…,” Edelman said.

That’s creative, but not convincing. What the data really show is that we were making good progress before LBJ imposed all his redistribution. But that rapid progress turned into slow progress and then basically came to a grinding halt within a couple of years. If that’s evidence of success, I’d hate to see what failure looks like.

If anything, the data show the benefits of moving policy in the other direction. During the Reagan years, for instance, redistribution programs were constrained and the poverty rate began to fall. And during the Clinton years, welfare reform and other market-friendly policies led to another drop in the poverty rate.

But that’s a separate issue. The main point of this post is to expose a remarkably flawed and inaccurate bit of bias embedded in an Associated Press report. I suspect it was accidental bias, presumably from some reporter who lives in a bubble and automatically assumed that government programs are like fairy dust and have magical effects.

In reality, of course, government programs tend to make problems worse, and that’s definitely been the case with the supposed War on Poverty. We have record levels of food stamp dependency, with more and more people being trapped in lives of dependency.

But watch this video and decide for yourself.

P.S. With support from left-wing international bureaucracies such as the OECD,  the Obama White House wants to rig the poverty numbers to justify even more redistribution.

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