The Democrats create New Math to explain their Economic Science
The language of science is math. Math is the immutable language of reality and truth, and therein lies its beauty. Physics, the most basic science, is written in the language of math and the other scientific disciplines are emergent frameworks based on the underlying physics of nature. You can think of math as the binary code in your laptop, physics as the operating system and biology, chemistry, geology as apps. Economics is also written in the language of math, and though more abstract than the hard sciences, it is a higher level emergent science and depends on the frameworks of the other applied sciences and the immutable properties of math.
Biden and most Democrats have redefined science as a popular belief that ignores math. “let’s look at the science” is the common statement from these politicians, many of whom do not understand or know what science is. They believe it is based on public opinion and common sense. The most obvious clue to the fact that few of these leaders understand science, and even fewer the underlying math, is their desire to tax our way out of debt. This cannot be defended by any known math. To pay off your debt you have to have some money left from your income after you pay off all your bills. In an economy income is created by capital investment. If you want to generate income selling pizzas you have to invest in a store. The investment if successful will begin to generate wealth. If you can generate wealth faster than you spend it on costs and taxes you can invest in another pizza shop, and the cycle repeats. Capital creates wealth. If costs or taxes are too high you will never be able to generate enough capital to open another store. You will stagnate of decline. If you borrowed money to open your first store you will not be able to pay if off.
Small businesses are now being hit with a double whammy from Biden. Higher minimum wages and higher taxes. This means less available capital and less investment in any math new or old that you use. The rate of growth in the economy is opposite to that of the rate of taxation. Of course some tax is necessary, but at a low enough level new capital will be generated at a rate such that the tax base actually increases. The Democrats are missing one critical point. Investment is from free cash available after expenses and taxes, and this lies mostly in high income sectors – the sectors they wish to tax the most. A tax on capital gains is no different than fining people for making successful investments. This discourages new investments and job growth and eventually results in a lower tax base overall. The math is immutable. Opinions about fairness and wealth distribution are not science and not based in any math that shows it can lead to the desired outcome. Examples abound, just look a Russia with an economy smaller than that of Texas and the failure of Venezuaela with some of the greatest natural wealth in the world lying under their feet. (more…)
Biden shut down the keystone pipeline to save the environment because we need to stop using oil. Most people agree with the last part, we need to stop using oil, but didn’t anyone tell Biden that the oil is being transported by trucks and ships and trains to dirty refineries, and the Canadians are not going stop just because we don’t build a pipe that would transport it without polluting to cleaner refineries. According to Alberta Premier Kenny “This is a gut punch for the Canadian and Alberta economies. Sadly, it is an insult directed at the United States’ most important ally and trading partner on day one of a new administration.”
This controversial decision by Governor Cuomo has even fueled secession talk by the southern part of the state that has sat idly by and watched neighbor Pennsylvania enjoy the huge economic benefits of shale development (as such, states like Texas and Oklahoma are banning fracking bans!). Fracking technology, after all, is a proven commodity that has been safely deployed for over 60 years in over a million wells – across the country to great success.
There was a small and short-lived flurry of optimism a few months ago that perhaps Jeb Bush’s 2016 candidacy would represent a major shift in the Republican posture towards climate change. With the help of deep-pocketed fossil fuel interests, the GOP and the conservative movement have spent the past couple of decades dismissing and sneering at climate change science, casting it as a global left-wing conspiracy. But Jeb came out with some moderate-sounding rhetoric that a few eager and hopeful observers interpreted as a sign that he might actually be serious about climate change, or at least that he was less pig-headed about the science behind it than, say, Ted Cruz.
