Podcast 314

Global Warming Hot Air. The ‘Climate Change Community’ thanks Brian Williams for making up stories, stealing coverage from what could be the biggest scandal in scientific history; It appears the US Government has been cooking the books when it comes to temperature data. Actual temperatures posted from weather stations in Paraguay, Northern Canada and Siberia have been altered (gasp) to show higher readings…for years. A midwinter meltdown would ensue, if this story was actually taken up by the news machine, but they’re too busy with Dirty Laundry from Brian Williams right now. Meanwhile billions of dollars are being spent on wind and solar, and electric car subsidies. Not to mention the legislative roadblock ordered up by Obama Crony Warren Buffett on the Keystone pipeline, due to concerns the EPA has over its environmental ‘impact’. Carbon Credits anyone? Hot Air indeed. More bad news for the IRS and for taxpayers. Thousands of taxpayer numbers and social security numbers have been hacked, and have been used by hackers to file early returns. People are discovering the problem when they file their taxes and get the message, “Your return has already been processed”. The actual taxpayer then has to go through the process of ‘proving’ to the IRS that they have been the victim of identity theft. This, with an agency that is so poorly run they don’t answer the phone, or even respond to letters, and sometimes when they do, they get confused. Solution? Give them more money. Oh Hell No! The solution is a new tax system that does away with the byzantine tax code and the poster child for government inefficiency; The Internal Revenue Non Service. Minnesota Governor Mark Dayton has kicked up a firestorm after giving his commissioners huge raises. The head of the unelected Met Council now earns well over one hundred thousand dollars a year. Other commissioners will make as much as $155,000 a year. Dayton says these people need this money to take care of their families. Keep in mind the average Minnesotan earns somewhere around forty eight thousand dollars a year, with no pension. State employees can double dip pensions, and their pension is based on their income. Remember, taxpayers pay their salary and fund their pensions. Governor Dayton catches a break though. It was revealed this week that the average dock worker on the west coast earns $147,000 a year, plus benefits paid by the employer and an eighty thousand dollar a year pension. What’s in your wallet? Sponsored by Baklund R & D. 

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Podcast 265

China Wins! Weekend updates start with the news that China has overtaken the US as the largest economy in the world. Except it’s not true. According to the IMF, using one measurement of economic magnitude, China has overtaken the US. Of course the US media jumps all over this story despite the fact that the measurement called PPP is controversial for many reasons. In fact China’s economy is considerably smaller and poorer than the US. However, it should be pointed out, when your neighbor is saying ‘things are better now’; if the US continues to have sub par growth (par in this case would be a normal dynamic growth of 4% or more for the same length of time as the recession), China will eventually overtake us. All the more reason to advocate growth policies focused on production, rather than trying to stimulate consumption. Protesters, variously reported as protesting the Ferguson Grand Jury decision and advocating for a higher minimum wage, blocked I35W just outside of the downtown Minneapolis. (Editor’s Note: The confusion in reporting got me talking about minimum wage, but the effect is the same. I don’t understand how making people angry because they sit in traffic for an hour makes them amenable to the cause, whatever that is.) The kinds of people who make more money are the people who develop time and productivity saving innovations, and figure out how to market them. Increasing wages by fiat won’t make anyone’s life better in the long run. Moreover, it’s possible in the short run, some fast food and service industries that employ human beings will automate most of these processes and actually improve service and the quality of their product. Low and middle skilled labor in the next twenty five years will face some grim employment challenges. Protesting this sea-change in the production and labor equation, is spitting into the wind. Black Friday sales are down, provoking all kinds of discussion about ‘what it means for the economy and retailers’. Probably nothing, either way. But, it does provoke a discussion about why some retailers are going out of business, and it isn’t because they’re not offering discounts. Its because they’re not retooling properly for the new consumers who don’t want to wait until the day after Thanksgiving for the best deals, and they want better service. Some stories from the consumer front prove this thesis. For example, a new study says people care more about the WIFI connection than they do the bed, when it comes to choosing a travel hotel. Did the North Koreans really hack Sony Pictures. Not so fast. Investigators now think it was a disgruntled employee. But the real story is how much these Hollywood types are making … but you won’t see any minimum wage protesters on the Sony studio complex. Meanwhile, more TV viewers are streaming their favorite shows, and its happening with radio too as people listen to podcasts and services like Pandora, over the internet. Finally, that all meat diet you’re on may actually be better for your heart than the gluten free bagel diet. New studies show its the carbs that kill your heart. Sponsored by Ryan Plumbing and Heating of Saint Paul, and by Depotstar. 

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