moral hazard

Increase The Payoff and Ensure More of It

Why work? We have finally reached the point where you can be richer by not working. When that condition prevails, it becomes economically irrational to work. Well, perhaps that is not true for all people, but look at this chart:   According to this chart, welfare spending per hour for welfare recipients exceeds the median income per hour for working [...]

Crack is a Minor Addiction Compared to Entitlements

The title of the article tells why correcting the economic problem will be so difficult. Entitlements and welfare must be cut. Some families have lived on welfare for a generation or more. They believe it is a right to live at the expense of others and will not take kindly to losing what they consider theirs. Larwyn’s Links provided the [...]

Bernanke’s Actions Explained

A clever way to illustrate what Ben Bernanke has done to the country. Thanks to Reader Jaimie for sending this to my attention: Open Letter to the Chief Confidence Officer of the United States of America Dear Dr. Bernanke, My nephew is a bad kid. He’s into drugs, high-risk sex, a steady stream of brushes with the law… But he [...]

The Ant and The Grasshopper — An Allegory For The Country

Absurdity is often an excellent way to make a point. Aesop thought so when he created the fable of the ant and the grasshopper. But just how much of a fable was it? This email updates Aesop’s attempt at absurdity. Unfortunately for the country, other than the anthropomorphic elements, the fable is no longer a fable nor absurd.  Much of [...]

OneTragedy of The Welfare State

A pathetic example of what liberalism has done to “help” the poor. How does the country break out of this cycle of dependency? What happens when the money runs out?   H/T Protein Wisdom

The Great Reset

Charles Hugh Smith calls what is coming The Great Reset. His article explains the what and whys of this reset. Below is part of his article which deals with three of these factors: Since the Status Quo is unsustainable, there will be a Great Reset. The timing and nature of that Reset is up to us. Yesterday I laid out [...]

Why We Are Broke

Bill Bonner is his inimitable fashion reduces the welfare state to its simplest essence: The debt ceiling is distraction. It’s just an American nuance to a genuine problem that is plaguing all the mature democratic/capitalistic economies. Greece, Britain, Ireland…dozens of other countries…and the US. As regular readers of this Daily Reckoning know, It is a problem with the funding of the modern [...]

A Class of Economic Zombies, Another Triumph of Socialism

Apparently our government has succeeded in making almost half of the population dependent upon it or others. Phil Izzo in the WSJ discussed a paper from the National Bureau of Economic Research: The survey asked a simple question, “If you were to face a $2,000 unexpected expense in the next month, how would you get the funds you need?” In the U.S., [...]

Sowell on Budget Crises

Dr. Thomas Sowell opines on budget crises: Government budget crises can be painful, but the political rhetoric accompanying these crises can also be fascinating and revealing. Perhaps the most famous American budget crisis was New York City’s, back during the 1970s. When President Gerald Ford was unwilling to bail them out, the famous headline in the New York Daily News [...]

The Fatuous Fed

Chris Whalen is one of the better financial analysts around Wall Street. His specialty is banking and he was one that warned early and often of the coming collapse of the financial system. Mr. Whalen has written a detailed analysis of the Federal Reserve entitled I am Superman: The Federal Reserve Board and the Neverending Crisis. The abstract of the article [...]

The Sausage-Making of Financial Reform

Another excellent clip from MSNBC’s Dylan Ratigan show. It is an interview with Eliot Spitzer and Jonathan Alter regarding the “Volcker Rule” and the obstructionists in the Obama Admininistration.