Category Archives: Debt

UPDATED: Miseducation Bubble (The Marketing Energizer Bunny)

Business, Debt, Economy, Education, Government, Welfare

“The housing house-of-cards was not the only ‘bubble in search of a pin’ in the modern-day USA. The intellectual bubble is also begging to be burst.” (May 8, 2009) Students have acquired an empty education—for example, a masters degree aimed at “working with nonprofit organizations”—so as to qualify for work in niche “specialties” which are very often spawned and sustained artificially by state-issued fiat money. “The second highest source of income [for nonprofits] is government grants or contracts.”

New York Post: “John Smith, 31, of Brooklyn, works part time at a Trader Joe’s because he hasn’t found work in his field for over a year, despite having a master’s degree. He has about $45,000 in student loan debt. His girlfriend, Meropi Peponides, 27, a graduate student at Columbia University, will have over $50,000 by the time she graduates. … Smith said he has sent out about 200 resumes in his search. He’s looking mainly for work with nonprofit organizations.”

“For the first time, Americans owe more on their student loans than they do on their credit-card bills, with a tally that could soon top $1 trillion — leaving millions of Americans with a crushing debt burden at a time when decent-paying jobs are scarce.”

MORE.

UPDATE (Oct. 24): THE MARKETING ENERGIZER BUNNY. As JP noted, one needs a formal education for a few highly skilled disciplines and professions. For the rest, the return to a classical, canon and core-curriculum oriented education—what used to be called traditionalist—is crucial in secondary school. Someone who can afford it ought to be encouraged to soak up the Western scientific, literary and philosophical canon as a first degree. But this elusive liberal arts, mind-growing education is rare and expensive.

Conservatives are no different from progressives in this matter. How often do you hear the mantra from Beck, “We need to teach kids how to think, not what to think.” Not you don’t! When you expose a child to the riches of the Western canon through top-down, teacher-focused teaching—his mind develops. Teach a youth of Socrates and his analytical method—and what do you think will happen over and above dendritic proliferation in the brain? Higher-order thinking. Ask a child to distill the central idea in a complex essay (which does not deal with diversity or other brain-deadening constructs). Don’t praise him when he gets it wrong. See how well PROCESS works for his thinking. The same holds with math, science, etc. This is what used to be called an education.

Back to fluffy bunny degrees. Marketing is another. The “marketing” types I’ve encountered know little and do NOTHING. They have various degrees and they write letters festooned with “enthusiasm,” “passion,” adoration for the product, Kumbaya, and the occasional obligatory requests for “feedback”—don’t waste your time; they’ll discard or have a panic attack if your recommendations entail pragmatic, result-oriented steps. That’s too much like work. A lunch meeting to discuss your “concerns” or “options”: now that’s the lingo and “action” they are comfortable with.

The marketing types I’ve encountered are incapable of planing and executing the most basic and logical of plans. In my case, they don’t know what an Alexa rank is, and so are positive that their site, ranked 16 millionth by Alexa is where your book sales originate. (Mine, of course, originate on ilanamercer.com, WND.COM and Amazon, and years of GRAFT.) They have no idea how to look at a client’s reach and product and match her with her target buyers. They are incapable of divining their client’s market and optimizing it. You’ve wasted scarce time and energy if you’ve written practical, logical, point-form suggestions for these types to follow.

Some “businessmen” derive masochistic pleasure from rotating these fluffy bunnies (as my husband calls the marketing persona), at considerable expense, one would imagine.

I believe that as an author who does most of the heavy lifting on these sites (which you all enjoy, and wish to support, I hope), I know more about marketing a book to a niche market than the marketing laggards I’ve encountered.

Alas, they draw the salaries. But economic reality is changing this last fact.

The one extremely bright person I have had the pleasure to work with on my last book project was a 20-year old home-schooled prodigy. No higher education. He learned superb programing skills through a mentoring program in his church. However, his intelligence, quick mind unpolluted by the public school, as well as an ability to think clearly and at a speed enabled him to branch out. Needless to say that such abilities and ethics are rare in our workforce. He was quickly poached for managing far bigger projects.

The latter programmer/developer was the only person I’ve worked with who was able to read an email (I number each task clearly. It’s the kind of methodical habit of mind one once acquired at school vicariously; at least I did), answer it, while addressing each of my points/concerns, and then promptly return a demo.

Frankly, well-structured, logical emails that enumerate tasks to be accomplished and problems to be solved have usually elicited a deathly silence in all other programmers/marketers with whom I’ve tried to engage. That’s scary!

Fortunately, and as I also learned in school, breathing is controlled by the autonomic nervous system. Were this not the case, the human energizer/fluffy bunny would already be extinct.

UPDATED: Fiscal Deficit Attributable To Immigration (Ad Hominen Fallacy)

Debt, Economy, IMMIGRATION

According to Edwin Rubenstein, President of ESR Research Economic Consultants in Indianapolis, the average immigrant household generates a deficit of about $17,000 per immigrant household. This figure is a function of the difference between federal benefits received and federal taxes paid. Whereas it used to be “that native-born households generated a federal fiscal surplus—paying more taxes than they received in benefits,” this is no longer the case. “Today’s deficit,” Rubenstein acknowledges, “is too large to be ascribed to any narrowly defined group.” Everyone is in hock. “Food Stamp Nation,” as Pat Buchanan puts it in his latest, admirable book.

Nevertheless, as I’ve previously argued, “from the fact that taxpayer-funded welfare for nationals is morally wrong … it does not follow that extending it to millions of unviable non-nationals is economically and morally negligible. Or that such immigration remotely comports with the libertarian goal of curtailing government growth.” It’s like saying that because a bank has been robbed by one band of bandits (welfare-dependent nationals), repelling the next lot (welfare-dependent non-nationals) is unnecessary given that the damage has already been done.

Rubenstein:

There are about 13 million such households in the U.S. Well, when you do the math—13 million times $17,000—you get a federal “immigration deficit” of $220 billion.
That is the fiscal deficit attributable to immigration. It equals about 17% of the entire federal deficit.
That is a big chunk. It’s roughly equal the annual interest now paid on the national debt.

UPDATE (Oct. 20): To James below, I’m glad you wrote: Subscribe to my newsletter, James. In my next WND column, I give you the tools to counter the false argument your kids ought to have been taught at school not to make. Against your numbers, your kids have advanced the ad hominen fallacy. Read tonight’s WND column and join us here.

Together, Forever, In Hock

Debt, Inflation, Morality

“Americans have over $886 billion in credit card debt, a figure that’s expected to rise to $1.177 trillion this year. More specifically, the report stated that each card holder has an average credit card debt of $5,100 and this number is projected to reach $6,500 by the end of the year.”

AND:

“The average U.S. consumer has a debt-to-income ratio of 150% … The ratio never exceeded 80% during the 1960s and 1970s.”

[FOX News has more.]

Government debt is, as Judge Napolitano put it, “so high, so insurmountable, so incapable of being repaid because the Republican leadership caved, that we have returned to business as usual; meaning that the government will not attempt to repay the debt. When various parts of it become due, the government will just roll it over and borrow more. This will go on until a large enough group in the Congress has the courage to say stop.

[SNIP]

Still on the topic of “values,” a preponderant number of Americans share the values of their leaders, at least when it comes to finances.

Percolating Euroskepticism

Debt, Economy, EU, Europe, Foreign Policy, Nationhood, Political Philosophy, States' Rights

Last month I warned that European “politicians had better beware: Ordinary Germans have come to realize that adding an overarching tier of tyrants—the EU—to their own government has benefited them as a second hangman enhances the health of a condemned man.”

Mainstream media is catching on:

“…there has been a colossal misunderstanding,” writes Ambrose Evans-Pritchard of The Telegraph, “around the world of what has just has happened in Germany. The significance of yesterday’s vote by the Bundestag to make the EU’s €440bn rescue fund (EFSF) more flexible is not that the outcome was a ‘Yes'”.

This assent was a foregone conclusion, given the backing of the opposition Social Democrats and Greens. In any case, the vote merely ratifies the EU deal reached more than two months ago – itself too little, too late, rendered largely worthless by very fast-moving events.
The significance is entirely the opposite. The furious debate over the erosion of German fiscal sovereignty and democracy – as well as the escalating costs of the EU rescue machinery – has made it absolutely clear that the Bundestag will not prop up the ruins of monetary union for much longer.

Left and right, American statists want to believe that work-horse Europeans (Germans, for instance) support the Eurozone and the wider European Union (EU). As I ventured in “Euro-Bondage & the Next Tier of Tyrants,” it is but a matter of time before patriotic Euroskeptics, to whom our press makes only veiled mention, reject the absurd claim that the EU colossus would or could advance their interests.

Fans of freedom, and hence of nullification and secession, should watch the developments in Germany with great interest. That country’s government and high court have flouted the people’s sovereignty for too long. A change is a coming…