US Government

Who’s Really to Blame for the Mess We Are in?

“A virtuous and industrious people may be cheaply governed.” — Ben Franklin

I have to laugh when I read about the fight over the budget and the “fiscal cliff” coming our way, and the decision by both President Obama (a Democrat) and John Boehner (a Republican) that taxes must go up to pay for the deficit.

What a joke!

First of all, there is no evidence whatsoever that raising more taxes (either through higher rates or limiting deductions) will do anything to cut spending. In fact, tax hikes just encourage them to spend more money. Government is out of control — and you are being hoodwinked if you think that raising taxes on anyone will make Death Star (Washington, D.C.) any more responsible.

I just reviewed the budgets of Obama and President George W. Bush since 2001 and guess what? Spending ballooned, skyrocketing 74%, or 6.2% a year!

Former President Bush never did run a budget surplus during his eight years in office, even though we generally were enjoying full employment. Even Keynesian economists believe you should run a surplus during times of prosperity.

Earlier this year, I met with ex-President Bush at a conference he was holding in New York. The title was “The 4% Growth Project.” I said to the organizer, “Do you mean economic growth or government growth?” The fact is that the economy never grew more than 4% in any one year of Bush’s administration. But government spending sure did. In fact, the rate of spending rose more than 7% in six out of his eight years of office. The only exceptions were 6.1% growth in federal spending in 2004 and 2.8% in 2007.

Government spending grew an astronomical 17.5% in 2009 alone, during the financial crisis.

So, who’s to blame for the fiscal crisis we are in? George W. Bush.

And President Obama has only made matters worse. Don’t get me started.

It shouldn’t come as a surprise to learn that politicians are ranked the lowest in the most recent Gallup poll on professions you can trust:
http://www.gallup.com/poll/159035/congress-retains-low-honesty-rating.aspx.

LAST CHANCE: Two-for-One Special Book Offer for the Holidays

My new 2nd edition of “Maxims of Wall Street” is out! It is the only collection of all of the great sayings on Wall Street, plus poems, stories, and parables about investing. Warren Buffett, Jack Bogle, Dennis Gartman, and Alex Green all love the book — a “classic” gift in dark green leather and gold lettering. The book is the perfect gift for anyone interested in investing. The price is only $20 for the first copy, and all additional copies are $10 each! Buy a box of 32 books and pay only $300. I pay postage and autograph each copy. To order, call Eagle Publishing at 1-800/211-7661. If you want to order a box of books, mention priority code MARKB. If you prefer to order individual books, mention priority code MAXIMS. Books are mailed out within 48 hours, to make sure you have them in time for the holidays.

To read my e-letter from last week, please click here.

You Blew It! Are We in a Common Era or a Christian Era?

Last week on TV, Christine Hayes, a professor of religious studies at Yale University, referred to the Christian Era as the Common Era. It’s one of my pet peeves. Here’s why.

For the past 20 years, scholars, especially Jewish historians, have started to replace the traditional abbreviation AD with CE. Anno Domini (AD) means “in the year of our Lord,” and non-Christians started using CE to avoid acknowledgement of Christ as Lord. Okay, I can understand that — Professor Hayes specializes in Hebrew studies. As a believer, I will continue to use the traditional AD and BC (Before Christ) designations.

If Jewish and secular scholars want to be objective and intellectually honest, they should still refer to CE as “Christian Era.” After all, it was the Christians who invented our current calendar that is used worldwide, even in non-Christian Asia. Historically, there are dozens of calendars out there, such as the Mayan, Julian, Byzantine, Buddhist, Chinese, Japanese and Hebrew. But the calendar adopted by all major countries, East and West, is the Gregorian or Christian calendar. Since they dominate, CE should stand for the Christian Era, not the Common Era, if you are going to give credit to the originators.

To call CE the “Common Era” would be like calling the Arabic numerals “common” numerals. It’s intellectually dishonest to refuse to give credit to an inventor, even if he or she is of another religion.

The next thing you know, “Yalees” will be saying “Merry Commons.”

Yours for peace, prosperity and liberty, AEIOU,

Mark Skousen
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Mark Skousen

Mark Skousen, Ph. D., is a professional economist, investment expert, university professor, and author of more than 25 books. He earned his Ph. D. in monetary economics at George Washington University in 1977. He has taught economics and finance at Columbia Business School, Columbia University, Grantham University, Barnard College, Mercy College, Rollins College, and is a Presidential Fellow at Chapman University. He also has been a consultant to IBM, Hutchinson Technology, and other Fortune 500 companies. Since 1980, Skousen has been editor in chief of Forecasts & Strategies, a popular award-winning investment newsletter. He also is editor of four trading services,  Skousen TNT Trader, Skousen Five Star Trader, Skousen Low-Priced Stock Trader, and Skousen Fast Money Alert. He is a former analyst for the Central Intelligence Agency, a columnist to Forbes magazine (1997-2001), and past president of the Foundation for Economic Education (FEE) in New York. He has written articles for The Wall Street Journal, Liberty, Reason, Human Events, the Daily Caller, Christian Science Monitor, and The Journal of Economic Perspectives. He has appeared on ABC News, CNBC Power Lunch, CNN, Fox News, and C-SPAN Book TV. In 2008-09, he was a regular contributor to Larry Kudlow & Co. on CNBC. His economic bestsellers include “Economics on Trial” (Irwin, 1991), “Puzzles and Paradoxes on Economics” (Edward Elgar, 1997), “The Making of Modern Economics” (M. E. Sharpe, 2001, 2009), “The Big Three in Economics” (M. E. Sharpe, 2007), “EconoPower” (Wiley, 2008), and “Economic Logic” (2000, 2010). In 2009, “The Making of Modern Economics” won the Choice Book Award for Outstanding Academic Title. His financial bestsellers include “The Complete Guide to Financial Privacy” (Simon & Schuster, 1983), “High Finance on a Low Budget” (Bantam, 1981), co-authored with his wife Jo Ann, “Scrooge Investing” (Little Brown, 1995; McGraw Hill, 1999), and “Investing in One Lesson” (Regnery, 2007). In honor of his work in economics, finance, and management, Grantham University renamed its business school “The Mark Skousen School of Business.” Dr. Skousen has lived in eight nations, and has traveled and lectured throughout the United States and 70 countries. He grew up in Portland, Ore. He and his wife, Jo Ann, and five children have lived in Washington, D.C.; Nassau, the Bahamas; London, England; Orlando, Fla.; and New York. For more information about Mark’s services, go to http://www.markskousen.com/

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